ARC's 1st Law: As a "progressive" online discussion grows longer, the probability of a nefarious reference to Karl Rove approaches one

Monday, April 18, 2005

Taxes

Larry Kudlow has interesting info regarding the issue of taxes (as friday was April 15). Unfortunately, I think the numbers probably are less in our favor as tax day fades from memory. However, I think a great way to encourage a low tax rate would be to hold elections on 4/16, the day after taxes are due. Although, since many people think that their refund is actually government sending them money (and not a refund of overpayment to the government sans interest), perhaps this wouldn't work.

How about we combine moving the election date (or the tax date to the 1st wed in November?), we also remove the practice of withholding by employers? Have everyone send in their taxes quarterly or annnually... There'd definitely be a tax revolt if they actually saw the taxes they pay.

Here's Larry's post:

Scrap the Tax Code!
Today is April 15th tax day and all week long the stock market has been plunging. I wonder if there is a relationship.

Are people selling stocks to pay their tax bills? According to a recent Harris poll, 55 percent of Americans believe taxes are too high. Only 33 percent believe they are about right.

What should folks pay for federal, state, and local taxes? 41 percent think 10 percent to 19 percent should be the maximum percentage. 23 percent think the top tax rate should be 20 percent to 29 percent. And another 20 percent think only 1 percent to 9 percent. That means 61 percent believe they should pay less than they do now.

Meanwhile, 77 percent think the federal tax system should be completely overhauled or needs major changes. What kind of changes? 33 percent prefer a flat rate income tax with no deductions. 19 percent favor a national sales tax. Would folks be willing to give up some deductions for a simpler tax system? 54 percent say yes. Should everyone pay the same tax-rate? 54 percent say yes.

Last year 44 million Americans -- that’s one third of all taxpayers paid no federal income tax after deductions and credits. But, according to the Harris poll, 59 percent believe everyone should pay some tax to the government.

As for me, I would scrap the present code and replace it with a flat tax system where tax forms would be no larger than a 5x8” index card. All income should be taxed at one low rate, preferably no higher than 20 percent. Saving, investment, capital gains, dividends, estates, and corporate investment shouldn’t be taxed at all. This simple, honest, fair, and flat tax code would spur growth, jobs, and wealth creation for all Americans.
I'll go for that!

***UPDATE***
Kudlow has an interesting linuep on this afternoon's show, discussing taxes (Arthur Laffer, not Larry Laffer) and bloggers. His show is becoming must see TV if you want to get info on economics and politics.
-- The Wall Street Journal's Tom Herman, on last-minute, legal ways to skirt the IRS

-- a market segment with Andy Kessler, columnist for the Wall Street Journal

-- Dr. Art Laffer, chairman of Laffer Associates, on the flat tax

-- Rep. John Linder of Georgia, on the fair tax

-- Bloggers Austin Bay, Roger L. Simon, and Wonkette, on John Bolton and the UN
Show airs at 5 EDT on CNBC.

Your Co-Conspirator,
ARC: St Wendeler