Tax Day Cometh: How to make April 15 just another day on the calendar

A flat tax is probably a good idea. – Like 0%. But 10% across the board would be progress. The economy would dance.

Below the author gives some more  ideas. We don’t endorse any of them necessarily. Just food for thought and discussion.

(From Marketwatch)

The flat tax, as originally conceived by economists Robert Hall and Alvin Rabushka in 1981, would tax income once, and only once, at a flat rate of 19%. That rate was chosen because it was found to produce the same amount of revenue as the prevailing tax system.

Workers would pay tax on wages, salary and pension distributions. Businesses would pay taxes on sales after deductions for wages, salary, pension contributions, materials costs and capital investment. No deductions, no double-taxation, no 1099 forms.

To make the system more progressive, only earnings above a per-family allowance would be taxed.

Some economists view the flat tax as a backdoor route to a consumption tax. (You can read the explanation here because I have never been able to grasp the connection.) They agree that, absent the inefficient allocation of resources encouraged by loopholes in the current tax code, the economy would be better off.

It’s hard to argue with the simplicity of the flat tax. Add up a few numbers, multiply by 0.19, then go out and smell the flowers on April 15.

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