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14 October, 09:26

What types of reforms woud you like to see in taxes?

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  1. 14 October, 11:12
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    First, all Federal taxes on utilities, energy, transportation, alcohol, tobacco, sin and luxury should be abolished with a 5 year transition period. During the transition, the tax collectors such as energy companies, should be instructed to pay the tax directly to the state in which collected.

    Each state has 5 years to replace the taxes, or not. The Feds should get out of the highway, rapid transit and airport business. Possibly the Feds would still do airplane safety. But not much more.

    The Feds would get out of the business of ATF regulation. Each state already does this and the Fed involvement is inefficient duplication.

    This first tax change decentralizes government just a little, which is the goal. Modern technology does not need a massive central planner.

    Second, all Federal taxes should be removed from the working poor. This especially means the payroll taxes of Medicare and Social Security. And this should be for both the employer and employee portions. The working poor should get a massive increase in their take home pay with no negative impact on the employer, customer or stock holder.

    At the same time, the EITC should be eliminated. The Earned Income Tax Credit is currently one of the most fraud plagued features of the US. It is the worst idea Milton Friedman ever had.

    Also at the same time the criteria to qualify for SSI, SSDI, Medicaid Disability and TANF, and food stamps should be tightened. Those programs should be limited to those who truly need it and not to those who are skilled at gaming the system.

    Currently in the US we penalize people for working and reward them for cheating. That is not good for the fabric of society.

    Third, we should remove even more loopholes from the Federal Income tax system. Currently big Corporations benefit from loopholes designed just for them. There should be no favoritism in tax policy. Taxes should not be used to favor my personal value system and beliefs, no matter how noble they are.
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