RESPONDING TO HUCKABEE’S PLAN TO REPLACING INCOME TAX WITH A NATIONAL SALES TAX IN THE USA—Simply Put, I Have a Much More Effective Solution!
RESPONDING TO HUCKABEE’S PLAN TO REPLACING INCOME TAX WITH A NATIONAL SALES TAX IN THE USA—Simply Put, I Have a Much More Effective Solution!
By Kevin A. Stoda
As currently I am a major on-line Republican candidate for President of the United States this 2008, I was happy to see that a Republican, namely Mike Governor Huckabee (R- AR), has advanced a new tax proposal for congress and the American people during the ensuing days of elections across America.
However, the solution he offers is far too simple: a national sales tax. It would also not lead us to get federal spending under control in many areas
The obvious problem with any such simple tax is that it is unfairly across-the-board or flat. This leaves the poorest of Americans paying light-years more than the wealthy in America for the simplicity of the tax.
In short, any flat tax brings the poorest Americans into the realm of paying the greatest per-capita share of any tax burden--in terms of crushing poor peoples’ dreams to climb out of a cycle of poverty and extinguishes future hopes and ability of the poor to have access to savings and investment opportunities.
For example,, under Margaret Thatcher the UK voters accepted a flat-tax some two decades ago, and since then most of the poorest have had to flee their jobs and housing in various booming urban centers of the UK.
Other Brits in rural areas have had to go to the cities to look for better paying jobs. Now the UK is still more urban than it was before Thatcher took office—possibly the most urban of any nation in Europe—and the U.S.A. is already following suit as more and more rural poor have to flee to urban areas to gain much better per capita earnings to keep up with the rest of America.
Do we wish to continue to depopulate so many portions of the USA in the 21st Century?
In sum, do we want to have a flat sales tax which (1) disproportionately harms the poorest and (1) continues to depopulate rural America?
I think—not.
AN ALTERNATIVE PROPOSAL: Cutting Income Tax into Thirds
I suggest scrapping the complex and unfair income tax scheme we have in the USA and advocate replacing it with a clear cut graduated tax—not a flat tax—on every adult in the United States who is eligible to work and maintains employment.
A graduated tax system would apply equally to companies and individuals:
--1% tax on first $15,000 earned
--2% tax on second $15,000 earned
--3% tax on third $15,000 earned, etc.
…
--Until a 10% tax cap is reached on earnings over $150,000
In my proposal, the federal government would be required to run 3 different sets of such graduated taxes to replace the current one.
The current U.S. system is a tax practice which relies too heavily on both an open-ended or an undifferentiated contract between national state and taxpayer, i.e. This allows the federal government to employ a taxing procedure only based on income (and is barely progressive) to provide the federal government with an-all-purpose purse (very non-transparent) to distribute moneys to various government departments and government projects in the USA and abroad.
The three-tax system I am proposing to replace the single screwy income tax system now in effect in the USA would be named simply “the three taxes”.
These three taxes would have clear names and objectives. They would be: (1) the education and social infrastructure tax, (2) the management of sciences, technology, and physical infrastructure tax, and (3) the security and defense tax.
The purpose of giving these taxes these 3 names is so the tax payer knows how the tax is to be used and clearly reminds congress how the taxes are to be used.
At a time when Americans are clamoring for a National or better health care structure it is extremely important, to have 1/3 of the budget set aside for social infrastructure and education—don’t you agree?
This clear and common focus among the three taxes should lead to greater transparency in management of all U.S. tax dollars—especially in the run-amok security and defense industries feeding off USA tax payers. Auditors could be used to determine how any one of the three tax departments could legally operate, account for its spending, or--in an emergency--conduct a transfer between the three tax funds.
In replacing the current USA income tax system, each of these 3 smaller taxes would be capped at 10% of income levels—even for those individuals and companies earning $150,000 per year.
Therefore, no tax payer or company would ever be required to pay more than 30% of his wages in any one year to the federal coffers.
This foreknowledge of how the new taxes are to be spent should also stimulate investment and growth in investment across the board—especially when the percentages of taxes at each grade of earnings is reduced by the federal government as the needs and opportunity arises..
Moreover, the federal government could choose to exempt (to some degree) at various tax grades those peoples who are unemployed, underemployed, impaired, taking care of large families, assisting their elderly parents, et. al from a portion of their taxes in each of the three categories of taxes.
BENEFITS IN TRANSPARENCY FOR ALL TAXPAYERS
The most obvious direct benefit of the proposal is that the new triple-tax system replaces the non-transparent income tax system currently used.
This system might even allow conscientious objectors to opt out of war taxes altogether for the first time in USA history.
For example, if citizens in one part of the country feel that too much money is being spent to promote war making industries and bad foreign policy, these concerned citizens and voters can clearly and firmly target a tax reduction in the security and defense tax.
Likewise, if some peoples in any one part of the country feels that there is a disproportionate number of peoples in another part of the federation who are unfairly freeloading off their nation’s generosity in terms of either social welfare & social infrastructure (or physical infrastructure, like in building too many roadways), they can target those 2 other taxes in a political campaign for an overall reduction in the operating tax domain.
SENSE OF URGENCY IN AMERICA
There is much urgency in the USA in 2008 to get its government spending and tax systems in line with good and efficient usage of the common tax coffer.
Estimates of the current U.S. government’s federal deficit—including borrowing which took place decades ago—now is at over 65 trillion dollars.
This juggernaut of a deficit means that every citizen in the USA (as part of the great USA) owes $165,000 in federal debt or that each full-time employed person in the USA owes $375,000.
In short, with all this debt, we Americans are simply still not getting the health, social development, and physical safety owed us.
How might we get what is owed us in terms of better government or commonweal?
A more transparent tax system is one of those immediate reforms which is needed—however, we American do not need an easy-but-bad flat tax which still does not shine the light on how the federal government squanders tax money on ill-thought out policies & programs.
Despite this glaring need for Americans to reign in government squandering of money and provide horrible mis-spending practices the light of the day, there has been little to no innovation in the income tax system for decades.
An innovation like that which I am proposing, i.e. which really addresses the transparency problems inherent in our federal government spending and taxing, would have solved the cost overrun problems to America found regularly in the defense, security, and war-making department expenditures.
The replacement of the current income tax with three separate smaller taxes would allow Americans to get a grip on the three different tmajor areas of their lives which are affected adversely by the current open-ended and uncontrolled U.S. income tax system.
Dear America, ask your congressmen, your presidential candidates and yourself, “Do we want to have a flat sales tax that (1) disproportionately harms the poorest and (1) continues to depopulate rural America?”
Also, ask yourself whether America couldn’t do much better in terms of government spending transparency in the future if we used a system like the one I have advocated to replace the unfairness and lack of transparency of the current income tax system?
I believe we deserve better.
CUT THE LEVIATHAN INTO 3 EASILY DIGESTED PARTS
In summary, the three different taxes proposed now by me to replace the current system in effect in the USA would be named: (1) education and social infrastructure tax, (2) management of sciences and physical infrastructure tax, and (3) the security and defense tax.
Such a tripartite division in our taxes in the USA would empower all Americans to cry foul and get retribution in terms of tax reduction.
With more clarity, we concerned Americans and businessmen could campaign to kick-out the tax-and-spenders in the government when any single one of these 3 areas of spending becomes way-out-of-line in terms of our own ability to pay (and out-of-line of the interest of most any American—such as is the case in the current expensive federal government sponsored, manipulated & long-running War on Terror--and its expensive and deadly Iraqi Sideshow).
By Kevin A. Stoda
As currently I am a major on-line Republican candidate for President of the United States this 2008, I was happy to see that a Republican, namely Mike Governor Huckabee (R- AR), has advanced a new tax proposal for congress and the American people during the ensuing days of elections across America.
However, the solution he offers is far too simple: a national sales tax. It would also not lead us to get federal spending under control in many areas
The obvious problem with any such simple tax is that it is unfairly across-the-board or flat. This leaves the poorest of Americans paying light-years more than the wealthy in America for the simplicity of the tax.
In short, any flat tax brings the poorest Americans into the realm of paying the greatest per-capita share of any tax burden--in terms of crushing poor peoples’ dreams to climb out of a cycle of poverty and extinguishes future hopes and ability of the poor to have access to savings and investment opportunities.
For example,, under Margaret Thatcher the UK voters accepted a flat-tax some two decades ago, and since then most of the poorest have had to flee their jobs and housing in various booming urban centers of the UK.
Other Brits in rural areas have had to go to the cities to look for better paying jobs. Now the UK is still more urban than it was before Thatcher took office—possibly the most urban of any nation in Europe—and the U.S.A. is already following suit as more and more rural poor have to flee to urban areas to gain much better per capita earnings to keep up with the rest of America.
Do we wish to continue to depopulate so many portions of the USA in the 21st Century?
In sum, do we want to have a flat sales tax which (1) disproportionately harms the poorest and (1) continues to depopulate rural America?
I think—not.
AN ALTERNATIVE PROPOSAL: Cutting Income Tax into Thirds
I suggest scrapping the complex and unfair income tax scheme we have in the USA and advocate replacing it with a clear cut graduated tax—not a flat tax—on every adult in the United States who is eligible to work and maintains employment.
A graduated tax system would apply equally to companies and individuals:
--1% tax on first $15,000 earned
--2% tax on second $15,000 earned
--3% tax on third $15,000 earned, etc.
…
--Until a 10% tax cap is reached on earnings over $150,000
In my proposal, the federal government would be required to run 3 different sets of such graduated taxes to replace the current one.
The current U.S. system is a tax practice which relies too heavily on both an open-ended or an undifferentiated contract between national state and taxpayer, i.e. This allows the federal government to employ a taxing procedure only based on income (and is barely progressive) to provide the federal government with an-all-purpose purse (very non-transparent) to distribute moneys to various government departments and government projects in the USA and abroad.
The three-tax system I am proposing to replace the single screwy income tax system now in effect in the USA would be named simply “the three taxes”.
These three taxes would have clear names and objectives. They would be: (1) the education and social infrastructure tax, (2) the management of sciences, technology, and physical infrastructure tax, and (3) the security and defense tax.
The purpose of giving these taxes these 3 names is so the tax payer knows how the tax is to be used and clearly reminds congress how the taxes are to be used.
At a time when Americans are clamoring for a National or better health care structure it is extremely important, to have 1/3 of the budget set aside for social infrastructure and education—don’t you agree?
This clear and common focus among the three taxes should lead to greater transparency in management of all U.S. tax dollars—especially in the run-amok security and defense industries feeding off USA tax payers. Auditors could be used to determine how any one of the three tax departments could legally operate, account for its spending, or--in an emergency--conduct a transfer between the three tax funds.
In replacing the current USA income tax system, each of these 3 smaller taxes would be capped at 10% of income levels—even for those individuals and companies earning $150,000 per year.
Therefore, no tax payer or company would ever be required to pay more than 30% of his wages in any one year to the federal coffers.
This foreknowledge of how the new taxes are to be spent should also stimulate investment and growth in investment across the board—especially when the percentages of taxes at each grade of earnings is reduced by the federal government as the needs and opportunity arises..
Moreover, the federal government could choose to exempt (to some degree) at various tax grades those peoples who are unemployed, underemployed, impaired, taking care of large families, assisting their elderly parents, et. al from a portion of their taxes in each of the three categories of taxes.
BENEFITS IN TRANSPARENCY FOR ALL TAXPAYERS
The most obvious direct benefit of the proposal is that the new triple-tax system replaces the non-transparent income tax system currently used.
This system might even allow conscientious objectors to opt out of war taxes altogether for the first time in USA history.
For example, if citizens in one part of the country feel that too much money is being spent to promote war making industries and bad foreign policy, these concerned citizens and voters can clearly and firmly target a tax reduction in the security and defense tax.
Likewise, if some peoples in any one part of the country feels that there is a disproportionate number of peoples in another part of the federation who are unfairly freeloading off their nation’s generosity in terms of either social welfare & social infrastructure (or physical infrastructure, like in building too many roadways), they can target those 2 other taxes in a political campaign for an overall reduction in the operating tax domain.
SENSE OF URGENCY IN AMERICA
There is much urgency in the USA in 2008 to get its government spending and tax systems in line with good and efficient usage of the common tax coffer.
Estimates of the current U.S. government’s federal deficit—including borrowing which took place decades ago—now is at over 65 trillion dollars.
This juggernaut of a deficit means that every citizen in the USA (as part of the great USA) owes $165,000 in federal debt or that each full-time employed person in the USA owes $375,000.
In short, with all this debt, we Americans are simply still not getting the health, social development, and physical safety owed us.
How might we get what is owed us in terms of better government or commonweal?
A more transparent tax system is one of those immediate reforms which is needed—however, we American do not need an easy-but-bad flat tax which still does not shine the light on how the federal government squanders tax money on ill-thought out policies & programs.
Despite this glaring need for Americans to reign in government squandering of money and provide horrible mis-spending practices the light of the day, there has been little to no innovation in the income tax system for decades.
An innovation like that which I am proposing, i.e. which really addresses the transparency problems inherent in our federal government spending and taxing, would have solved the cost overrun problems to America found regularly in the defense, security, and war-making department expenditures.
The replacement of the current income tax with three separate smaller taxes would allow Americans to get a grip on the three different tmajor areas of their lives which are affected adversely by the current open-ended and uncontrolled U.S. income tax system.
Dear America, ask your congressmen, your presidential candidates and yourself, “Do we want to have a flat sales tax that (1) disproportionately harms the poorest and (1) continues to depopulate rural America?”
Also, ask yourself whether America couldn’t do much better in terms of government spending transparency in the future if we used a system like the one I have advocated to replace the unfairness and lack of transparency of the current income tax system?
I believe we deserve better.
CUT THE LEVIATHAN INTO 3 EASILY DIGESTED PARTS
In summary, the three different taxes proposed now by me to replace the current system in effect in the USA would be named: (1) education and social infrastructure tax, (2) management of sciences and physical infrastructure tax, and (3) the security and defense tax.
Such a tripartite division in our taxes in the USA would empower all Americans to cry foul and get retribution in terms of tax reduction.
With more clarity, we concerned Americans and businessmen could campaign to kick-out the tax-and-spenders in the government when any single one of these 3 areas of spending becomes way-out-of-line in terms of our own ability to pay (and out-of-line of the interest of most any American—such as is the case in the current expensive federal government sponsored, manipulated & long-running War on Terror--and its expensive and deadly Iraqi Sideshow).
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