Tilted Forum Project Discussion Community - View Single Post - Our Current Tax System

KMA-628 · 11-21-2004, 10:11 PM

Regardless of your political persuasion, I would guess that most of us here believe that our current system of taxation is in dire need of a change--replacement or otherwise.

So.....we have something that is broke....how do we go about fixing it? Do we repair it or do we replace it?

Here is my stance:

I throw my support 100% behind a consumption-based taxation system using the following parameters:

1) I am still playing with the numbers, but a rate in the 15-19% area is where my support falls. I have seen a few proposals of lower and a few proposals as high as 30% (I hear about higher proposals, but I haven't seen any). The obvious hope is that the rate will be reduced over time as gov't revenue increases.

2) The first $18,588 (poverty level) of spending is tax free for everybody.

3) The following taxes are abolished: Income taxes, Capital Gains Taxes, Estate Taxes, Gift Taxes and some excise taxes.

4) The IRS is gone. Management of the system happens at the state and retailer level, with reimbursement for management costs being paid by the fed.

Advantages? Well, in my opinion (I am writing a white paper on the topic), the advantages are many. The two biggest being a simpler system and how hard it would be to avoid (i.e. tax evasion and the undergound economy). I also think that there would be a huge influx of money into our economy from companies moving their headquarters to this new tax haven (some would be new and some would be returning). In an effort to be concise, I will stop here. The list of advantages could easily go on for pages. I will respond with more if the need desires. I did not post links because the above information came from my head. Yes, I used a lot of different sources to formulate my opinion, but none of them directly relate to my personal opinion of the idea. I found that The Cato Institute had many good articles going over the pros and cons of such a system.

What is your opinion? I welcome any comments from people that are against a consumption tax, because it helps with my research. However: First, tell me if you think the current system is broke or not. Then, give me a possible solution. Believe me, I have read many, many cases made by people that are against such a system so I am familiar with their points of contention (i.e. Pelosi and McIntyre). In other words, I would like to hear more than criticism of a proposal, tell me your ideas.

11-21-2004, 10:11 PM	#1 (permalink)
KMA-628 ....is off his meds...you were warned. Location: The Wild Wild West	Our Current Tax System - Upgrade or Replace Regardless of your political persuasion, I would guess that most of us here believe that our current system of taxation is in dire need of a change--replacement or otherwise. So.....we have something that is broke....how do we go about fixing it? Do we repair it or do we replace it? Here is my stance: I throw my support 100% behind a consumption-based taxation system using the following parameters: 1) I am still playing with the numbers, but a rate in the 15-19% area is where my support falls. I have seen a few proposals of lower and a few proposals as high as 30% (I hear about higher proposals, but I haven't seen any). The obvious hope is that the rate will be reduced over time as gov't revenue increases. 2) The first $18,588 (poverty level) of spending is tax free for everybody. 3) The following taxes are abolished: Income taxes, Capital Gains Taxes, Estate Taxes, Gift Taxes and some excise taxes. 4) The IRS is gone. Management of the system happens at the state and retailer level, with reimbursement for management costs being paid by the fed. Advantages? Well, in my opinion (I am writing a white paper on the topic), the advantages are many. The two biggest being a simpler system and how hard it would be to avoid (i.e. tax evasion and the undergound economy). I also think that there would be a huge influx of money into our economy from companies moving their headquarters to this new tax haven (some would be new and some would be returning). In an effort to be concise, I will stop here. The list of advantages could easily go on for pages. I will respond with more if the need desires. I did not post links because the above information came from my head. Yes, I used a lot of different sources to formulate my opinion, but none of them directly relate to my personal opinion of the idea. I found that The Cato Institute had many good articles going over the pros and cons of such a system. What is your opinion? I welcome any comments from people that are against a consumption tax, because it helps with my research. However: First, tell me if you think the current system is broke or not. Then, give me a possible solution. Believe me, I have read many, many cases made by people that are against such a system so I am familiar with their points of contention (i.e. Pelosi and McIntyre). In other words, I would like to hear more than criticism of a proposal, tell me your ideas.