I have a post about sales tax and fees instead of income tax. It's bad enough in *states* that don't have an income tax; think about being nickle-and-dimed to death for *everything*! It would make under-the-table deals more appealing. I could perhaps support a flat tax because it would at least be predictable, but I think in that case a sales tax would be fairer, because only people who spend money pay tax. Suddenly, savings increase 100%
Think of all the CPA's put out of work! My uncle is a CPA and what would he do? Sure it's always personal like that, but seriously, a lot of these people are very specifically trained and have been doing it for years.
I suppose something like this wouldn't happen overnight. Corporate/government inertia shouldn't preclude good reform ideas. But I think the tax system is in much better shape than, say, health care. I actually kind-of like the idea of having health care be a group thing that you shop around for the best deal with a group and it doesn't depend on your job. Not nationalized, though. I believe that capitalism is the only thing motivating the research into new drugs. (John Kerry's idea of allowing everyone to buy "cheap drugs from Canada" is stupid -- pharmaceutical co.s hate nations that set prices for them; they don't make money that way.)
My dad's was a CPA, then decided to become a business man. My grandpa was made obsolete by the movable type newspaper press or something to that effect. Many buggy-makers were put out of business by Henry Ford. And the tax system is in absolutely absurd shape, and costs a zillion dollars to maintain. Plus, corporations still need accountants, lots of people still need accountants, and besides, this doesn't nickle and dime at all, at least not in the same way as, say, a tollbooth. There's a sales tax now and you don't even notice it. The best part about something like this is that you are in no way penalized for being frugal, saving money, or for investing. That's one thing we need, especially people our age, who aren't going to see a penny out of social security.
I did some reading about this a few hours ago for a post on my site. It turns out that the Bush administration has been paying very close attention to Russia's 13% flat-tax experiment for more than two years now and are impressed with what they've seen. (Growth rate of 10% over two years, 50% higher tax revenues over the same period.)
Furthermore, a 15% flat tax was a part of the preliminary post-war plan for Iraq. Paul Bremer signed it into law back when the CPA was still running the show, and it remains in place now with no sign of going away any time soon.
It seems like the Bush administration has been thinking "flat tax," or at the very least "massive tax reform," for some time now. I think this might be a part of the President's second-term legislative agenda.
It'd also be a fantastic campaign plank: get the Democrats to defend the IRS. Brilliant.
In response to your update update, I now know infinitely more about tax policy than I knew twelve hours ago. I still don't know jack, but before sunset I knew nothing at all. So I'm learning fast, but I'm still ignorant.
It seems to me that the big problem with the tax system is the complexity of it. Deduction this, bracket that, withhold this, schedule that. Compliance costs are huge—I don't know how huge 'cause I haven't gotten that far, but it's big—and it's too easy to screw up. Plus, enforcement costs the government way too much.
So a tax reform plan that gets rid of the complications and the loopholes would be good. A nationwide sales tax would clearly do that, but I agree with your sentiment that price perception is important. The idea of a 30% sales tax on consumer goods makes me swallow my gum. And VAT just sounds so mind-bogglingly complex that it's hard to imagine it'd be an improvement.
(Good Heavens. I can't write my grocery list in under 1,000 bytes.)
I'd be in favor of a flat tax if (1) it continued to be withheld by employers, (2) there were no deductions or exemptions for normal taxpayers, and (3) you didn't have to file a return at the end of the year. Just take my taxes right out of my paycheck and let me get on with it.
Then again, maybe a sales tax is the right idea after all, because it would get us back to that pain threshold you talked about. If the citizenry has to think about their federal taxes every time they buy a pair of shoes for little Malachi Jr., they'd be a lot less likely to support yet another blue-sky government program.
In other news, I wonder how much the government would save in tax return form printing costs alone? You know somebody's already done the math on that one.
there are three main advantages to a retail sales tax that i can think of. pardon me for relying on my memory of what Texas Representative Dan Archer (first D, then R, though after an election!) used to say when he was pushing the idea.
first, goods produced in the US pay taxes at the corporate level, and then when they are shipped overseas, taxed again at their VAT. goods shipped here pay taxes at their corporate level, but don't get sales tax. if we get rid of corporate taxes here, our goods will be cheaper overseas relative to theirs and will sell better. American quality at a cheaper price. their goods get taxed just the same in sales tax, so everything sold here contributes to the tax base, not just American goods.
cont...
another great benefit is that as the government thinks about raising or lowering the sales tax, the shopkeepers of the nation will scream bloody murder to keep them low.
the third thing he always thought would happen was that rich people and corporations in other countries would move their money and their operations here to avoid the crappy tax situation in other countries. who wouldn't try to move all their filthy lucre to the largest, most stable economy in the world? hell, we even insure deposits up to $200,000! think how much fun it would be to read about the "offshoring" of great big European companies to the USA. all those jobs here for us. Europe crying that we are not taxing enough. i am trying to summon up the crocodile tears now.
WHAT ABOUT CITIBANK ETHICS AND THE LIES THEY TELL
ALL I WAS TRYING TO DO WAS PUT MY DAUGHTER FIRST
HOW DID CITIGROUP MAKE THE LIST OF THE 100 BEST COMPANIES FOR WORKING MOTHERS TO WORK AT??????
MOTHER FIRED VIA UPS 13 DAYS BEFORE CHRISTMAS AND STILL CITIBANK LIES TO CLIENTS ABOUT WHAT THEY DID
IF YOU RECEIVE THIS A SECOND TIME I AM SORRY
ALSO FEEL FREE TO POST AND FORWARD OUR STORY TO ANYONE YOU THINK COULD HELP US, THANKS
ON SATURDAY I RECEIVED A LETTER FROM CITIGROUP THANKING ME FOR MY FIVE YEARS OF SERVICE YET THEY JUST EXPLAINED TO THE DFEH WHY THEY FIRED ME
PLEASE HELP US GET TO THE TRUTH
GETTTING THIS LETTER WAS VERY DISTURBING SINCE I FEEL I WAS WRONGFULLY TERMINATED
I HAD NO PLANS TO LEAVE CITIBANK IN CARMEL
THE LETTER EVEN STATES TO ANOTHER 5 YEARS BUT THEY FIRED ME!!!!!
A FEW DAYS LATER I RECEIVE ANOTHER LETTER CONFIRMING THAT I WAS FIRED!
HOW MESSED UP IS CITIGROUP??
Subject: IS IT LEGAL TO LIE TO THE DFEH & US DEPT OF LABOR? CITIGROUP DID & THEY LIE TO CLIENTS IN CARMEL PLEASE READ THIS LETTER SENT TO THE MONTEREY HERALD
The Monterey County Herald
Attn: Herald Executive Editor, Carolina Garcia
Monterey, CA 93940
cgarcia@montereyherald.com
(831) 646-4306
Ms. Garcia,
I have attempted through several sources to clarify my
position regarding my unfair treatment by my previous
employer, Citibank. I had no previous plans to leave
my position as Head Teller at the Citibank branch in
Carmel. After 4 years of employment with the company,
the unfair and unequal treatment of employees led to
medically supervised work-related stress. The manager
of the branch then accused me of job abandonment which
led to my termination via UPS delivery on December 15,
2005, while I was at home on medical leave.
Subsequent to my termination, I received numerous
correspondences that referenced me as terminated, no
longer with the company, and as a former employee. My
401K and pension have both been forwarded to me.
However, when interviewed by the Department of Fair
Employment and Housing, Citibank representatives
reported that I was terminated due to not personally
reporting my absence, but rather having medical
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