9/08/2004

FOXNews.com - Politics - National Sales Tax Promoted as Fairer System

Sorry for the lack of posting. Between a new job (which keeps me busy during the day) and my son's football season (which keeps me busy every evening), I've been pretty busy.

I could have posted about the respective Democratic and Republican conventions, but I could have predicted what was said beforehand. But in case you missed it, I'll summarize:

Democrats: Our country sucks. We're on the wrong path. Bush sucks and we hate him. We care about the poor and middle-class (even though we're all super-rich). We need to raise taxes to help the poor and middle-class. We need to keep jobs here and penalize out-sourcing. Republican policies have resulted in a net loss of jobs. The Iraq war was wrong. We care about everyone and everyone should have special rights.. And oh, Bush sucks and we hate him. Vote for the war hero John Kerry if you hate Bush.

Republicans: Our country is great. Our tax-cutting plan is working as the economy is growing (along with the deficit), and jobs are being re-added. We will win the war on terror. The Iraq war was morally correct even though we acted on faulty intelligence. We care about the poor and middle class which is why we passed the Medicare and Education bills. Trade with foreign powers is better (because we instituted protectionist policies and allowed out-sourcing of skilled/educated labor). Democrats are girlie men. We don't like gay marriage. Oh, and our response to 9/11 was to kick ass. Vote for Bush if you love our country.

Libertarians: Both parties are whacked. Neither party respects our encourages a free market economy. Both spend money like drunken sailors. Neither party respects true freedom.

In any case, the article talks about a national sales tax which in my estimation, is long overdue. The article failed to mention some potential benefits of the national sales tax.

1) Income from the black market economy will now be taxed.
a) Anyone making money illegally (drug dealers, prostitutes, gambling, etc) pays based on consumption.
b) Tipped income will now be taxed. Bartenders, Waitstaff, Valets, Strippers will now all pay taxes.
2) Tax law simplified/eliminated resulting in a glut of lawyers that will have to go out and find a real job.
a) Potential downside to a glut of attorneys? More frivolous lawsuits.
b) April 15th will now be an ordinary day!
3) Existing infrastructure is already available in most states (via sales taxes already collected).
4) There will be a real benefit to saving and investment
a) As capital gains and interest income will no longer be taxed, that money will only be taxed when spent.

I've been a supporter of a national sales tax for years. It's truly the ONLY fair way to tax. The more you spend, the more you pay.

The only modifications I'd make to the idea are as follows:

1) Exemption for food (NOT fast food).
2) $250k home purchase exemption (anything over $250k would be result in the normal sales tax). That would cover most middle class home purchases.
3) After talking to a few people, vehicles are also an important element. Perhaps they are also worthy of an exemption.

What do you think?

4 Comments:

Blogger Adam Chalmers said...

This comment has been removed by a blog administrator.

September 9, 2004 at 7:53 AM  
Blogger Adam Chalmers said...

Dear Liberal Slayer,

As far as the national sales tax summary goes. I have a few questions. How do expect, or better yet why would someone working within the boundaries of the black market claim income on their taxes? If I was an arms dealer on the black market or drug dealer selling crack and making $250,000 per year on the side, I sure as heck wouldn't claim that as income on my taxes for fear I'd get arrested. Maybe I'm missing the line of reasoning for point 1 and 1a of the potential benefits of a national sales tax system. Can you clarify? Other than that, I agree with your summary.

AC

September 9, 2004 at 8:56 AM  
Blogger Adam Chalmers said...

I guess I can see your line of reasoning for points 1 and 1a. In other words, if an arms dealer who generates income from selling weapons on the black market buys a Ferrari, they get taxed, etc.

AC

September 9, 2004 at 10:02 AM  
Blogger Liberal_Slayer said...

Exactly. Anyone making money under the table or through illegal means will now pay taxes. Drug Dealers, Prostitutes, arms dealers....not to mention others that get paid in tips...bartenders, wait staff, hairdressers, valets, etc. All will pay taxes now...but at a much lower rate. And because EVERYONE pays, revenue should increase...along with the economy (as people have more money).

It should also encourage more savings and investment because people have more money in their own hands...rather than in the government's coffers.

September 9, 2004 at 11:00 PM  

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