Sure there are a plethora of tax plans which may be serviceable in the short run. But there is only one tax plan which can function to keep government supplied with necessary funds, and which contains its own “self-check” system to discourage excess government spending.
Before I reveal this plan, allow me a minute to explain. For fiscal year 2006, the top one percent of tax payers paid just shy of 40% of all income taxes. If you find that shocking, just consider that the bottom fifty percent of taxpayers paid less than 3% of all income taxes. Now, it seems rational that those who earn more should, in fact, pay more in taxes. However, our current progressive taxing system gives the bottom fifty percent almost zero incentive to demand less government spending. Put another way, five of every ten taxpayers may rightly feel that they can safely vote for increasing the size of government since the resultant tax burden to them will amount to less than 3% of the cost of such increase.
Like it or not, to restrain government, every tax payer must be angry about government spending and waste. Logically the only way to do that is to make all share the burden of government overspending. The solution: a national sales tax to replace the income tax. When low income and middle class Americans buy a $35.00 pair of jeans, yet have to pay an additional 30% tax to actually wear them, they will want to hold someone accountable. It is my hope that that someone will be their congressman.
Other systems may appear fair on their face, but in reality, they give half of the American population an incentive to soak the other half. What’s fair about that?