Random thoughts about taxes in an attempt to be logical and consider logical rebuttals….
- Federal taxes should be as little as possible to support the smallest federal government possible.
- A consumption-based tax system is inherently fairer than a system based on income.
- The so-called “Flat Tax” really isn’t “flat.” Yes, it proposes a flate “rate,” but a person making $100K will still pay considerably higher taxes than a person making $40K. This isn’t logical or fair. What other products or services are priced based on one’s income? A truly “flat” tax would be a tax which is the same for everyone.
- Whatever federal tax system exists, everyone should have to contribute to it. No one, no matter how little one’s income, should be exempt. If you don’t pay something, you have no sense of ownership.
- Revamping our tax system may have negative consequences for charitable giving. This is an unfortunate byproduct of a current tax system which manipulates behavior toward charitable giving. We all do it and feel good that we’re helping a charity while somewhat “sticking” it to the government. However, logic dictates that we all would be better off paying far less taxes, providing more disposable personal income with which we could make even greater charitable contributions.
- A tax structure which provides federal revenue for social needs — even well-deserved social needs — is NOT in any way compassionate. Conservatives are often chided for lacking compassion because we want to reduce taxes. Any system which forces others to pay taxes for the sake of “helping” those in need is the antithesis of compassion. Pay taxes or go to jail. Is this compassion? True compassion comes from an individual decision free of coercion to provide assistance to those in need.
- To the extent our current tax system is not significantly modified, it should allow each taxpayer to set aside a portion of his/her federal taxes to be “directed” or “designated” for specific federal programs, services and/or selected private charities. This will instill an element of market competition for tax dollars that will make our federal programs and services more efficient.
- A consumption tax will help (though not fully) engage the underground economy to contribute to tax revenues.