The road may be narrow. There is, however, still a road to be traversed.
Very true, any comments on Lindsey's approach to Taxes and navigating the political rapids?
To maintain a broad base and low rates we must find a mechanism to make tinkering unpopular. More to the point, we must find a way of making it so that the marginal voter is opposed to changes in the tax code, or at least so that Congress thinks that is the case. We are dealing with political economy, not economics, and our focus should be on the fact that political economy, like markets, is a dynamic process.
What I believe to be the key of Lindsey's points.
HR2525 provides the mechanism by being a single rate visible tax with a pre-paid monthly tax payment offset paid to everyone rich and poor.
The monthly offset meets the requirement for the bottom end wage income folks to meet their tax payments yet participate in and resist increases in the levied tax rate. Any shifts in the tax system incidence causes an increase in rates for everyone.
The key is maximum participation and perception of the tax, while providing a basis of self interest to keep the system in place.
The Flat Tax system, by maintaining personal exemptions, taxes on business and not removing payroll taxes, provides the illusion of free lunch for those most dependant on government largess and panders to the idea of the rich guy and nasty of businesses paying the piper.