Posted by
Mike on Saturday, October 15, 2011 5:52:28 PM
http://www.westernperspective.blogspot.com/
What is lacking in our present tax code is a built-in inducement to
dramatically limit government spending and borrowing. Under my plan of a
graduated tax on wealth, all classes of society, particularly the super
rich, would have an economic incentive to cut government waste and
other excesses because everyone's taxes would always be proportional to
the total amount of government expenditures each year. Higher
expenditures would mean higher taxes for everyone, and lower
expenditures would mean lower taxes.
Many people in America are attracted to the simplistic 999 plan because
it is backed by powerful, wealthy interests. This plan however is
diabolical in that it would shift the tax burden away from the
super-elite and to the poor and middle class Americans who are already
overtaxed. A strong middle-class made up of intelligent entrepreneurs
is necessary to create jobs. By weakening the middle class, effective
control of peoples' lives would be taken over by a tiny minority of
financiers and business tycoons working hand in hand with the
government, in exchange for a guaranteed pittance of spendable income
for the rest of society. Far from improving the economic outlook, this
would actually further sicken the economy.
The capitalist argument that people should have a right to keep what
they have earned or inherited is somewhat misleading. Taxes are
essentially to keep government functional. The real question is how we
in society determine what a "fair share" is. With the benefits of
increased wealth go a greater obligation to support the government
which, to be fair, must be reflected in increasing tax rates as overall
wealth increases, provided that there is always an incentive to produce
more. Taxing income is always detrimental because it creates a need for
some to opt out of the system. Unlike what we have today or would
continue to have with 999, by doing away with income taxes everyone
capable of work would have to work for a living without incomes being
taxed, and therefore only the disabled and truly needy poor would have
to accept public assistance funds. These could be sustained by funds
from a supplemental sales tax within the separate states, keeping the
federal government out of the process completely.