No, I'm not out of my mind. But thanks for asking.
Gary Johnson makes a good case for switching from a cumbersome income tax and to a consumption tax. Yes, it's still confiscatory. Yes, taxes are still stealing...and I make that argument every day.
However, if we are interested in moving forward with some fiscal responsibility, then there is a net plus to his overall plan. He says he would cut MORE than the amount of the deficit in the first year. That stops the printing presses. If he were to eliminate the income tax and replace it with a revenue neutral sales tax, there would be an immediate savings in the economy of hundreds of billions of dollars that currently go toward compliance. Another plus.
He explains that prices currently include the costs of income tax, social security, and compliance at the corporate level. Eliminate those expenses and prices drop...add the sales tax and prices go up...the net effect he claims would be price neutral. Not sure I buy that completely, but I believe that net net it would be an improvement over where we are at today.
This is all an intellectual exercise because the plan will never be put into effect, and the way it will really work if passed by the Republicrats is we will keep the income tax AND pay a national sales tax.
Nevertheless, I think the idea has some merit...certainly better than Biden telling the world he INTENDS to impose another trillion dollars worth of taxes!
Want DP delivered to your inbox daily? Subscribe here: