Democrats want to raise your taxes (by letting the Bush era tax cuts expire) while Republicans want to keep your taxes the same or lower them by keeping the Bush tax cuts. Democrats argue that raising taxes is necessary to cut the debt. Republicans argue that cutting taxes will increase jobs and cut the deficit since all tax cuts have resulted in increased revenue.
Here is a novel idea. Instead of cutting taxes or raising taxes let’s optimize taxes. That is, let’s figure out what tax rates produce the most income without removing incentives to work and earn money. And lets implement a tax rate that encourage folks to make more money.
How many times have you heard somebody (usually in the service sector) say they did not want to work overtime because “the government gets all of it any way.” That should never be in the vocabulary of Americans.
We need a tax structure that encourages success instead of penalizing it. The worker should be saying “I’ll gladly work that overtime” or “Hey if I take on a part-time job or start a small business I’ll just make (and keep) more money.”
What say yea? Makes sense doesn’t it? An optimized tax system that encourages you to make more money! That is novel, innovative, and certain to create more jobs and get folks working while also cutting the national debt.
Just B
ReplyDeleteThe only fair tax is one where rveryon pays their own share of government. I don't think it's been doable for centuries, much longer in the "Civilized World", There will always be those can't support themselves, let alone government.
As an Illustration, Federal, State and local government will spend roughly 6.0 Trillion dollars this year, roughly $20,000 for every man, woman and child in the country. Most families of four don't make that much.
It's not fair to tax people for working hard. I'll agree. But until spending gets cut down to size, I don't see much choice.
I like the concept although I haven't a clue how it would be implemented.
ReplyDeleteConsumption is the only way. Pay tax on what you buy. If I buy a new car fine. If you buy a new tv ok you pay tax. Food, not junk, should be the only exemption. Just my thoughts though
ReplyDeleteUnfortunately I think some of you missed the point of "optimizing" taxes. It might be cutting or raising rates or even both.
ReplyDeleteFishygal, nice try but I think you are falling into the "Fair tax" trap (or worse yet the VAT approach). Neither optimizes taxes or encourages work.
Grumpy, yea of little faith!
Old Lady, I think you are the only one that caught the "optimize" tax rate part. And in a few days I will present an outline of my proposed approach to optimize taxes and encourage folks to make as much money as they can. Unfortunately it will be a few days - but its an innovative concept that is do-able, even with today's idiotic tax rules.
Oh, and thanks all for the comments!
ReplyDelete