What do you think is a better system?
Personally, I hate SS and Medicare, would like it to be gone, to have never happened, but that cannot be dealt with here.
Incentives to save and invest MUST be encouraged. No taxation of interest or dividends or cap gains at all. Perhaps some regular taxation of cap gains if not reinvested within a certain time.
A national sales tax to replace income tax might be good. This captures illegal activity and wealth vs. earned income. HOWEVER, there is way too much incentive for any gov't to continually increase that amount. They might be much more accountable for it since it is readily seen when someone makes a purchase vs. withholding from a paycheck.
In this type of system, accountants are released to a more productive life (I am one of that group, btw), billions of hours in productivity are saved, I believe marriages will flourish, flowers will grow...shall I continue?
Frankly, our system is broken. Politicians are for the most part spineless and incapable of fixing it.
My thesis for today :-)
Amity
Alternative B