In honor of Tax Day [cue funereal music], I'm putting up this Washington Times editorial, Flat-out case, for your review. In it, Daniel Mitchell comments:
If anything is likely to boost support for the flat tax, it's the annual nightmare of tax season. Imagine junking all the paperwork the current system requires and replacing it with two simple postcard-sized forms that tax income only once and at one low rate. Imagine a simple and fair tax system that required all Americans to play by the same rules, regardless of how many lawyers and accountants they had on the payroll. And imagine politicians having no ability to put loopholes in the tax code in exchange for campaign cash.
Ooooh. Pretty. Me likes! Yay! Yay! Flat tax now!
I have to say, in the last couple of years, I have become flat-tax-friendly. I don't know if I've passed over into advocacy just yet, but I'm close. Flat tax policy has some incredibly good short-term benefits by those countries that've implemented it:
Other countries certainly seem to realize the importance of tax competition. Eight nations in Eastern Europe have adopted flat taxes, for instance, including a 13 percent flat tax in Russia. Two of the countries -- Romania and Georgia -- adopted the flat tax this January, and Poland just announced that it will be hopping on the flat-tax bandwagon. . . .Other nations have cut tax rates deeply. Ireland does not have a flat tax, but it has slashed its corporate tax rate from 50 percent to 12.5 percent. Combined with other tax cuts, this helped turn the "Sick Man of Europe" into the "Celtic Tiger." Unemployment has dropped from 17 percent to 5 percent, and Ireland is now the second-richest nation in the European Union.
Tax competition has forced other European nations to cut their corporate tax rates. Indeed, there has been so much progress that every nation in Europe now has a lower corporate tax rate than the United States -- even socialist countries such as France and Sweden. . . .
Tax competition is causing a global shift toward better tax policy. Fifteen years ago, people would have called you crazy if you predicted the Soviet Union would disappear and that a bunch of communist countries would have a flat tax. Twenty years ago, people would have laughed if you said that Ireland would have a 12.5 percent corporate tax rate and be the fastest-growing economy in Europe.
Oh, if only I could keep more of the money that is mine! I'll make sure it gets to the poor in my community, thank you.
Posted by Clifton at April 15, 2005 10:06 AM | TrackBackOh, if only I could keep more of the money that is mine! I'll make sure it gets to the poor in my community, thank you.
Thanks for providing me with this year's toddler image.
Flat taxes are a wonderful way to step all over the poor and the lower-middle class. 13% from "not very much" leaves a much bigger hole than does 13% of A LOT. Yes, I can do the math (that's part of your point, in fact, that it's easier) and figure that the rich man pays in a lot more with his 13%, but the 87% he's left with includes (more than) he ever needs, while the 87% left to an already-struggling single mom will never be enough.
Sales taxes, especially when levied on necessities and are exorbitantly high as in TN, present the same problem.
You know what? I don't trust you to take care of the poor in your community. At all. I don't trust myself, either. Collection and distribution as a self-governed society is the way we manage that trust factor.
Posted by: joe at April 16, 2005 06:25 AMJoe:
I've read your comments here and over on the blog you linked to.
Thank you for proving true the proverb: He who has a weak argument, or no argument, tries to hide that fact with ad hominem.
Next time practice a little common politeness.
Posted by: Clifton D. Healy at April 16, 2005 07:01 AMClifton, lighten up. I wasn't in any way being impolite -- just sarcastic. There's a difference. Besides, I said "Thanks."
No ad hominem was intended, okay?
And would you mind pointing out where my argument is weak? Or nonexistent? I'm really trying to discuss this. Tell me how 87% of $15K/year leaves one in the same financial shape as 87% left of $150K/year or $1.5Million/year. Tell me how people exiting the system and trying not to pay taxes gets things done (including the war that most of us don't even want).
Posted by: joe at April 16, 2005 08:20 AMYou may not realize it, but with your "Happy Confiscatory Thieving Government Tax Day!" phrase you are being offensive to your fellow citizens of the United States. You may not realize it, but we citizens (voters) are the supreme power-holders in the land, therefore the ultimate buck-stop for the "government" is with each and every one of us. Don't accuse your fellow citizens of being "confiscatory" and "thieving," and we might not feel obligated to shame you for it. Make sense?
Posted by: joe at April 16, 2005 08:31 AMJoe:
Yep. You're still an argument short of presenting an argument. You've proven nothing.
Get some data. Marshall some evidence. Present an argument. Then get back to me.
Meantime, I'll be taking care of the poor around me to the extent I can--without Big Brother's help. Whether you trust me to or not.
Posted by: Clifton D. Healy at April 16, 2005 12:54 PM