The endless liberal mantra regarding taxation is that the rich don't pay their "fare share". In my book, if someone makes a million dollars and pays $100,000 (10%) in one year, while another makes $50,000 and pays $10,000 (20%), $100,000 is still ten times as much as $10,000 regardless of the percentages. The first person and second receive the same benefits and services provided by the Government, but one paid ten times as much.
In any event, we could argue that the liberals are right! A progressive income tax does not tax the wealthy, it taxes those trying to become wealthy. Americans who already have their wealth need not pay income taxes at all if they have no income. Everyone acknowledges that citizens must pay some sort of taxes for the protections and services Government needs to provide. So, what is fair? What sort of system of taxation would ensure that all citizens contribute to the running of the Government in an equitable manner?
We need a system that can be explained as taxing the wealthy more so that they are forced to pay their fair share.
Step one: abolish the income tax and all confiscatory payroll taxes including Social Security and Medicaid. Also eliminated would be all corporate taxes.
Step two: establish a national sales tax on all goods and services.
It is critical to explain to the public that this system of taxation will ensure that the rich will pay more because they spend the most.
Will the cost of purchasing products rise for everyone? Yes. However, imagine the absolute delight of working Americans when their take-home pay skyrockets. In addition, employers can begin to actually decrease their compensation offers to new employees because of the huge increase in take-home pay. This, in turn, would lead to higher profitability, enabling companies to lower prices to consumers in standard free market competition. The lower prices would help offset increased cost due to Federal Sales Tax.
The I.R.S. would need to be re-made from a bloated agency chasing down every citizen to one that enforces the collection and remission of sales taxes by businesses. This undoubtedly would take power away from the federal government and produce spending savings.
