By Landon Farley, 7513Media contributor
Leftism’s desire to fund this or that well intentioned but misguided public social and economic programs might be easier to toletate, if their desire to have a punitive tax system could stand a compromise.
That is to say, if taxation was based on collection rather than confiscation, one could almost care less as to which daft programs ended up being collectively funded.
Economic rubes will likely try and tell us that the government already “collects” taxes. No. Any tax system based on that which is earned or produced, is confiscatory in nature. Government takes (and I do mean takes…ask Wesley Snipes what happens when an individual chooses not to be taken from) our collective taxes.
It takes them in a variety of forms. Income taxes, payroll taxes, property taxes, Medicare and Social Security taxes…all kinds of taking going on.
The revenue our government takes could be merely collected and remain revenue neutral. Revenue neutral meaning however much money the government currently takes, can be collected in the exact same amounts and then divvied back out towards whatever leftist ends are popular, or up for being called a new entitlement at the moment.
Consumption taxes are the answer.
Applying a flat, 23% (as of 2004, I think that number would be 24% right now) to the sale of each item available for purchase (good or service) within our economic transactions would keep government receipts revenue neutral and it would be the collection of taxes based on individual, free choices made within their daily economic transactions.
Typical complaints about this measure are that this may increase the cost of goods and services and that the rich need to pay more. Neither of these two complaints are based on measurable thought.
For one, goods and services already have additional costs. They are called embedded taxes. Embedded taxes are costs that are placed upon businesses in the form of taxation (payroll, SS, etc.) and included in the price of whatever good and or service a given business is offering.
Businesses do not pay taxes. Consumers do. There are no embedded taxes necessary when taxation is applied at the back end of a transaction. The cost of goods and services would likely come down a meaningful amount in a short period of time if the only cost a business had to account for was the cost of making and distributing their good or service.
Second, the complaint about rich people potentially not paying “their fair share” (what a godforsakenly stupid phrase) is sort of mindboggling. If some billionaire went out and decided to buy a yacht, let’s say a $10 billion yacht, at 24%, that becomes a $12.4 billion purchase, with the government receiving $2.4 billion in revenue right there, on the spot, with that one purchase. I wonder how many tens of millions of poor-middle class taxpayers pay less than $2.4 billion combined in any given year.
And to that point, who buys the most stuff in any society? Rich people.
Society need not take stuff from other people. We can collect revenue (based on our free choices) and still provide public funds towards whatever giant daft entitlement programs our society’s little hearts desire.