How Income Taxes Should Work...
October 29, 2007 12:24pm CST
There is a lot of discussion about taxation and what is the "best" way for a government to exact it from the people. Graduated tax systems are really only systems for social engineering. Sales taxes work, but how many levels of distribution should be taxed? Tariffs on imports could work for smaller to midsized nations who are able to import enough to keep the treasury going. To me none of them are as good as a simple flat tax for a percentage above a specified income. Flat tax would be the best, but there comes a point in income where it costs more to tax the person than is collected. So, I think the federal tax should be set at 10% after the first $30,000 in income. I also think the $30,000 should be the base, adjusted for cost of living, since $30,000 here in Sheboygan, Wisconsin gets you pretty far, but $30,000 in Anchorage, Alaska or New York City barely covers parking. No social engineering, no class warfare games and no mickey mousing around with deductions or tax shelters. Above all, no one would have to pay someone else just to figure their taxes.
• United States
30 Oct 07
I agree, either a flat tax as you suggest, or that Fair Tax sales tax. Either one would work, and once in place it should never be raised. The government needs to learn to live within it's means just as the rest of us have to.