duh...Laffer ping
When are people going to wake up to the fact that the real plan is to go to a one world currency?
Would people allow for stopping Earned Income Credit at least....I mean that is 100 percent welfare if you ask me.
I thought if we paid 100% tax (receive nothing for working) and just relied on gubmint for food, clothing, shelter and transportation, that it would result in prosperity for all ???!!! </SARC
In the end, the current income tax system is a huge impediment for economic growth because it discourages personal savings and capital investment in the USA because of taxes on bank account interest, stock dividend payments and capital gains. Going to the Forbes flat income tax plan now and start a 3-4 year transition plan to completely phase out the income tax in favor of FairTax (H.R. 25/S. 13) is the best way to go, in my opinion.
The income tax is the price the government sets on its recognition of the legitimacy of your income.It is a price. In a free market, the interplay supply and demand set the price; in a monopoly (i.e., in government) price - tax rate - is the independent variable which drives demand.
The higher the government sets the price, the lower the demand, the less income gets reported and taxed. Unfortunately for those who promote themselves by promoting high tax rates, the actual demand curve is highly "elastic" - demand decreases so rapidly with increasing tax rate that the product of the rate and the demand peaks at a tax rate of around 30%.The manifestation of decreased demand for legitimate income is recession. Attempting to raise revenue by setting the tax rate above 30% is a fool's errand.
sfl
The required political and fiscal restraint would fail long before the first “new” tax dollar was ever collected.
This would “rob” Congress of its primary method of getting reelected since they would have no “new” money to bribe (there is no other term available) sectors of the electorate. See Wisconsin’s recent political theater for proof of statement.
Bottom line 1 - Congress critters would have to become, again, part time workers because their ability to steal from one group and give to another for their personal gain would disappear.
Bottom line 2 - any fiscal policy that isn't directly linked to a nation's annual DGP is doomed to failure. This harsh economic reality is what caused the collapse of numerous Latin American nations in the interwar decades of the 20th century, the Soviet Union, is causing the collapse in Europe, and will cause the eventual collapse of the United States.
duh...