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Corsec67's crazy tax rewrite

corsec67 (627446) writes | more than 6 years ago

User Journal 1

This is my (quite crazy compared to what we have) tax rewrite for the US. It is inspired in part by Ron Paul.

My solution is to pass a constitutional amendment that prevents the federal government from collecting any fees, taxes, donations, or seized goods from any citizen. Also in that amendment would be a provision that income may not be taxed by any state, county, or other local government.

This is my (quite crazy compared to what we have) tax rewrite for the US. It is inspired in part by Ron Paul.

My solution is to pass a constitutional amendment that prevents the federal government from collecting any fees, taxes, donations, or seized goods from any citizen. Also in that amendment would be a provision that income may not be taxed by any state, county, or other local government.

A sales tax is specifically allowed, as the primary method for states and governments to get money.

Revenue for the federal government would be provided by the state governments alone, with some specifications for how much each state pays, whether that is by population, a percentage of that state's revenue, or such. Aside from certain declarations of emergency by a state, federal monies would also not be allowed to benefit a state or other local government.

And that is the plan. It is very revolutionary, and quite different from what we have now.

Gone is the IRS, along with the huge accounting businesses that have sprung up to help people to interpret that crazy tax code. Also, the federal government would not be able to take money from people in a state and then hold that money hostage pending that state from passing certain kinds of laws (55 speed limit, 21 drinking age, 0.08% BAC to name a few).

The government has to get money somehow, and a sales tax by the state and other local governments is all that is left. This would mean that it doesn't matter where your income comes from, nor does the government at any level need to know. Nor do citizens that don't run a business have to even collect and remit to the government any taxes at all, since the current sales tax infrastructure would take care of that.

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While we're all talking crazy... (0)

Anonymous Coward | more than 6 years ago | (#23611519)

Let's run this by you:

Abolish all of the deductions, credits and subsidies, eliminate the AMT, forget about "windfall" tax and start using taxes to promote public good instead of "punishment". These would apply to corporations and humans alike.

Think we need to find new energy sources? Deduct ANY spending towards research and development of new energy sources at... let's say 300%. Why ANY? Because that allows even newcomers to the field to benefit, rather than locking it in to just established "energy companies". If a farmer thinks he can come up with a new way of generating biofuel, let him try on the same grounds as BP. Of course, if a person wants to spend more than 1/3 of their income on it, there's no extra tax benefit (but if the farmer's device works, then the excess spending would offset that much of those profits too...)

Think we need to drill for more oil? Deduct 200% of the cost of building rigs and drilling holes.

Think we need cheaper medicine? (Well... start by abolishing insurance, so the costs are no longer gamed by entities outside of the transaction for their own profit. The insurers contract with doctors to force them to charge the uninsured more, so they can scare the uninsured into joining their plans) Deduct the cost of charity care at x00% (where X is sufficiently high that the cost of the charity care provided as a percentage of the income would be less than the percentage they'd have to pay in taxes, since unlike the cases of research and exploration, there's no "payoff" at the end... or is there? hmm...).

Of course, spending's not the only way we could deduct. Negative savings rates got you down? Deduct the investment at twice the rate of inflation (note to government: stop lying about the rate), so no matter how terrible the economy, you came out ahead (hm, need to think on this one some more, what if I deposit and withdraw the same amount over and over... % of some kind of average balance over the year?)

Around and around the money goes, and eventually someone will end up using it on something that the public doesn't consider to be worth the dollars spent on it, and at that point, unless they've done "more good" to the public through dollars spent elsewhere, they'll have to make up the difference at whatever tax rate.

I suspect this plan actually has a better potential of reaching the point where libertarians want to go than trying to undo the income tax and abolish government handouts all at once. It can promote charity in the specific fields that the government is currently meddling in now, and a sufficiently charitable person or company would have no tax burden, yet still have a profit. As an added benefit, it will tie up Congress with trying to sort all the different ways people and companies can spend money into tiers of public good instead of pretending that they have any idea how to run a country.

But hey, I'm just talking crazy here.
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