“Ron Paul Headlines The Drudge Report for Saying ‘Tax Rate Should Be Zero'”: My Vision of Tax Reform

The Humble Libertarian: Ron Paul Headlines The Drudge Report for Saying ‘Tax Rate Should Be Zero’.

In tonight’s GOP Presidential Debate, you had four of the five Presidential Candidates. Coming out for a Flat Tax with Rick Santorum coming out for a 17% Flat Tax. Whether Sen. Santorum is aware of it or not. Only he would know this, he supports a Middle Class Tax Hike. And supports a Middle Class Tax Hike 85%. Because currently the lowest Tax Rate in our Federal Income Tax. Is 10%, so imagine your a Construction Worker, Educator or Law Enforcement Office. And lets say your working in those professions for 10-15 years. And your making lets say 40-50K$ a year. With your current Income Tax Rate. Your paying around 4-5K$ a year in Federal Income Taxs. Under the Santorum Tax Plan, you would get a Tax Hike of 2800K$ a year and now paying 6800K$ a year in taxes. You want to talk about Class Warfare, a Middle Class Tax Hike. Would be an example of that.

So thats just one weakness of a Flat Tax, the other weakness. Lets say your making 10M$ a year, your a Corporate CEO. Perhaps a Corporate Attorney, maybe a Doctor, Entertainer, Lawyer. All fine professions where the workers deserve to be well paid. Based on what their customers feel about their services. Right now your paying before all the Tax Deductions, around 33-35% in Federal Income Taxes. Or about 3.3-3.5M$ a year in Federal Income Taxes. Under the Santorum Tax Cut Plan, you would be paying half of that. Getting a 50% Tax Cut while the person making 40K$ a year gets an 85% Tax Hike. So again the weakness’s of a Flat Tax, is that Middle Class Workers get a huge Tax Hike. While High Earners get a huge Tax Cut.

What I want to do instead is have what I call a Progressive Consumption Tax. Which is similar but different then what’s called a Fair Tax. Which is another Consumption Tax, under my plan. We would tax people by what they spend, what they get out of society. Instead of what they make and put into society. So we stop taking from people based on what they produce. But instead take from people base on what they take. And it would again be Progressive, because products need for the Cost of Living. Housing, food, transportation etc. Would be taxed less then what people spend on Luxury Item. Party’s, vacations, Luxury Cars, Expensive Meals, entertainment, Junk Food and Drink etc.

The Republican Party is suppose to be the Low Tax anti Tax Hike Party. But when they talk about Tax Reform, except for Ron Paul and his allies. They all have ideas to increase taxes on Middle Earners. While they cut taxes on High Earners. With a Progressive Consumption Tax, High Earners. Would still be paying the most in taxes. Based in total but also in percentage. Because they spend the most, because they can afford to.

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About Ederik Schneider

Blogger on a whole host of subjects.
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