Observations on life

Taxation Without Exasperation – WSJ

Raising federal revenue doesn’t have to be so intrusive and economically stifling. It’s time for the U.S. to start taxing consumption instead of income.

Source: Taxation Without Exasperation – WSJ

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Categories: Observations on life

7 replies »

  1. Consumption taxes hurt the lower middle class and poor. Europe is in trouble with all the social programs they are trying to fund, even with the higher taxes. The flat tax will not be any better for the lower income worker. Leave the income tax in place, but adjust the rates for everyone to pay a little more and only spend the revenue you collect, no more deficit spending on anything. Get rid of the fat – Dept. of Education, savings 70 Billion per year. Dept of agriculture, savings – 160 Billion. Dept. of Commerce, savings 60 Billion. The Federal government is wasting tax dollars on subsidies a 17 Trillion dollar economy does not need.
    I am sure there are other departments and programs that could be cut, but I do not think the politicians have the backbone to make the tough choices.
    The government and private debt bubble is going to pop and when it does, it is going to make 2008 look like a Sunday Picnic.
    As a nation we cannot continue this overspending on stupid things and expect no consequences.

    Liked by 1 person

  2. Well, my concern is that all these years I have accumulated savings, much of it Roth, where I already paid income taxes. And, just about ready to take Social Security.

    Not sure I am ready to pay again.

    Just like those who want to change from real estate taxes to income taxes to fund schools… Changing longstanding structure.

    Just change to individual, flat tax! no deductions! no exemptions! collected as earned (not annually), and withholding will = tax. Same thing on other “transactions”

    Finally, not sure I want to make it easy for legislators to raise taxes/revenue.

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    • Not an easy issue to deal with or change. Property taxes are a real problem. If my income were closer to average senior I couldn’t stay in my house where we have lived for 40 years given my taxes are $14,000 on a small house we paid $59,000 for.

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  3. Hi Dick. I would be concerned about taxing consumption because a major input to the GDP is the consumer spending and if you raise the costs significantly then the consumer will find a way to do without or raise the “underground economy” to new levels even more than it is today already. Russ

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    • Not sure, it doesn’t seem to have that impact in Europe, but u could be right. But there has to be a better way than what we are doing now.

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    • Although I would prefer a flat tax, a consumption tax is still better for me then the present system of income, sales, and property taxes. My reasoning is that I can choose when and what to buy. Property taxes just keep rising here in NJ and at some point for most seniors it will eat away from their income. Seniors already do not have control over their medical care costs nor property taxes rising uncontrollably. As for the poor who rent, their rents continues to go up to help pay the landlords property taxes. If you can stabilize rents maybe the poor can buy more or save some money.

      Tax reform must include all taxes and just not shifting from one tax to another.

      Liked by 1 person

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