I understand the basic desire to tax those who have more to gain, but I disagree for a variety of reasons.
1) If you wanted equality, which anyone should in America, a flat percentage rate without deductions or anything else, would certainly be fair. The rich would pay more money as it's based on percentage.
I do not favor this as it still does not address basic wealth and requires more involvement from the government in our lives than is needed.
2) We could easily eliminate the income tax and replace it with nothing. The debt isn't something that will fix itself, but if you are any kind of fan of supply side economics (Muldin, etc) you'll see that tax rate is not synonymous with tax revenue.
When Americans have money, we use it for business. When we do not have money, we do not and we reduce competition, small business, and encourage monopolistic business (which is currently evident).
Income tax is a small percentage of the government revenue and is generally not needed, but would give the people a large boost, especially now.
3) State sales tax is by far the least intrusive and most equitable form of taxation.
This covers all people. Tourists, immigrants, tax cheats, rich people, illegals, etc. There is no distinction and no requirement for government documentation.
Peace
KJ
PS - If you got tons of cash laying around, me my wife and my 4 kids could really use of it.
[edit on 11-5-2010 by KrazyJethro]
