by: the Common Constitutionalist
There have been plenty of candidates on the Republican side who have advocated for a flat income tax. Most, if not all conservative Republicans have offered up some variation.
And given a choice between the current tax system and a flat income tax, most people, me included, would choose the flat tax.
A flat tax is a good gauge of just how conservative a candidate really is. After all, a progressive income tax is just that – progressive – and aren’t we, or shouldn’t we be done with big government progressives?
So when we hear Donald Trump say he’s a conservative who wants an additional tax levied on those wealthy Wallstreeters, Hedge Fund Managers and the like, we know he can’t be a conservative, as we define it. So, by extension, anyone who advocates for any sort of flat tax is automatically more conservative and less a big government progressive.
One of the major reasons those who advocate for a flat tax is the incredibly complex and burdensome tax code, and the IRS itself. By instituting a flat tax we can rid ourselves of virtually the entire tax code, thus eliminating 90+% of the IRS.
As an added benefit, there would be no more need for lobbying firms in Washington. Lobbyists flood D.C. for a singular purpose. They are there to make back room deals – buy influence, favors and most importantly, tax exemptions. They pay millions of dollars every year to lobby politicians into writing carve outs for their clients, to lessen their tax burden. It’s a total racket. The flat tax would eliminate all of this.
So, it sounds like I’m firmly against Trump’s populist wealth and Hedge fund tax idea, and I am, but I’m also not in favor of a flat income tax. If we must be taxed, and we must, it should not be on our production, but on our consumption.
No matter how you slice it, even a flat income tax is a mandatory tax. And with something like Rand Paul’s flat tax proposal, all investment income is non-taxable. All savings, capital gains, dividend and interest income would be tax free.
It’s sounds great to those of us who understand it, but politically it would a tough sell and one would have to educate the ill-informed of the sin of double taxation, which itself would be difficult.
Instead, I’ve been advocating for a national sales tax, with but a single deduction – food and non-alcoholic beverages. Everything else would be subject to the tax. It’s the only true fair tax, and it’s also the only “optional” tax.
But some might say: “So the rich will pay the same amount as will the poor and middle class?”
To this I say, No – no they won’t. The will pay the same percentage but much more in real dollars by virtue of what they purchase. By purchasing that Ferrari, the rich guy will pay a pant load more in tax than you buying that Honda Accord or Ford Fusion.
Also, as an added selling feature of a fair sales tax, think of it this way.
Most states already have a sales or consumption tax in place. When a poor or middle class person buys a shirt, they pay the same percentage of tax as a rich person. The sales tax has no way to discriminate between who’s rich and who’s not.
And guess what – no one complains about the non-progressive nature of a state sales tax – why would they complain about a flat national sales tax. Sure, people complain about the sales tax, but no one ever says the rich should be paying a higher sales tax rate for the same item. It’s only the political class who plant the seed of discontent and envy of the rich not paying their fare share in order to maintain the current corrupt system.
Now obviously, the 16th Amendment, the income withholding Amendment, would have to be repealed either through Congress or a convention of the States. And an Amendment would have to be added to the Constitution requiring a super majority of both Houses to increase the sales tax rate. Otherwise it would all for naught.
As I stated, unlike the flat income tax, the consumption is optional, to a point. If you don’t wish to pay the tax on that $8000, 90 inch TV, by a smaller version and save – or don’t buy one at all, and like magic, you’ll owe zero tax. It’s completely up to the consumer.
We would no longer have to fret over whether Joe Hedge Fund guy is “paying his fair share.” Joe Hedge Fund guy buys a lot more crap than the average consumer does, ergo, he will be paying a lot more in taxes.
See – it’s fair – and it’s the only one that is.
So say no to Trump’s progressive plan, and all others – and yes to the fair tax!