I totally agree with the doctor and retired Arizona state Sen. Thomas C. Patterson because, for years, I’ve come to the exact same conclusion (“Could the fair tax be in our future?” Sept. 19).
For decades, the U.S. federal income tax code has been, and continues to be, a massively bloated, dysfunctional mess. I have a relatively simple tax situation but need an expensive tax software program to claim a $10 foreign tax credit from dividends issued by a U.S.-based mutual fund investment. Why is it so darn difficult?
Politicians, deep-state bureaucrats and special interest groups weaponize the tax code (picking winners and losers) to promote (and give tax cuts to) the preferred behaviors that they’ve subjectively decided are in the public interest, while punishing monetary behavior they arbitrarily find offensive or greedy.
As a destroyer of wealth, a deterrent to the production of income and a disincentive to achieving financial success, we must ax the income tax.
And replace it with a consumption tax. Pay as we go and generate government revenue the same time as we consume.
Here’s a look at some simple sales tax ideas:
First, starting with what won’t be taxed. Within reasonable limits, life’s necessities — like food, clothing, shelter, health care, education, transportation and telecommunications — will be tax-exempt.
That means: Everything else becomes discretionary spending and will be subject to consumption tax.
The sales tax will be progressive. Large-ticket (increasingly expensive) items will be taxed at proportionally higher rates.
So, if multimillionaire types want a new yacht, they will help out by contributing generously to Uncle Sam’s coffers. And all purchases above a certain limit must be strictly digital and monitored, so they can’t try to circumvent the sales tax by buying overseas or under the table. Extremely stiff penalties will help deter aspiring sales tax cheats.
Of course, the devil is in the details (to be worked out), but I bet if the IRS puts its money-grubbing noggin to it, we could easily ax the income tax!
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