Thursday, October 2, 2008

A Real Bailout for Our Economy

Part of the current $700 billion package is lots of targeted tax cuts to entice Republicans with fiscally conservative constituents to vote for the bill. Some of the Democrats are complaining that there's no way to pay for tax cuts. Tax cuts aren't something Government pays for. They are us keeping more of what we earned. The government hasn't any right to assume our money is theirs. If that "income" decreases, government's job is to figure out how to live within its means, not steal more from the taxpayer.

We know the tax code is massive, unwieldy and full of traps and loopholes. I'm for a Fair Tax, but recognize how unlikely that is. So, let's emulate the very successful strategies of countries that haven't had the money for massive tax bureaucracies the way we have. Russia has a successful 13% flat tax, as do many small countries in the region. Let's dump our tax code for one that will fit on a 3 by 5 card, perhaps 15%. Let's suspend the capital gains tax (you know the one Obama wants to raise out of "fairness" even though that would deepen our financial crisis) for a couple of years to flood our market with foreign capital instead of nonexistent taxpayer capital. Let's drop the corporate tax to a low flat rate as well to stimulate domestic business productivity and attract foreign corporate headquarters to the U.S.

If we do these things, the government will have to live with less but the average citizen won't. Why should we suffer when they could solve this by reducing our tax burden and living within the available tax "revenues"?

1 comment:

Big Jay said...

Okay - first.... Fair Tax. I'm surprised you support it. Where is a good place to go to read up on it other than places Huckster cited when he was trying to get the nomination.

Second - I pretty much line up with reason.com for how I feel about this horrible bailout. What a load of crap.

Here is a link:
http://reason.com/news/show/129291.html