AnalyticBridge
Data Intelligence, Business Analytics
A possible solution to solve the tax problem
This would apply only to federal taxes, but can not be easily applied to local taxes. It would save a lot of money - many hundreds of billions per year, that could be redirected to education or health care. I'm not sure how it could be implemented, you would first need to centralize and consolidate several federal budgets.
The solution seems very simple though: eliminate all taxes (business and individual taxes) collected by the IRS. Eliminate the IRS. Replace these lost taxes by the federal government printing money for itself alone, and have it print as much money as is necessary to replace the lost taxes. Then allocate that printed money to roads, education, health care, services for the poor, and other federal programs etc.
It won't make individuals wealthier - they will have money because they don't pay federal taxes anymore, but their money will be diluted by the federal money printing. It won't make individuals poorer either. But they will stop wasting all that time filling IRS forms and spending money to pay accountants. No more tax fraud, no more audits! All that wasted energy and wasted money goes to new education programs, etc. to actually produce something useful to the society.
Is this a wild dream, or is it impossible to implement it, or does it have several major flaws that I haven't foreseen?
Views: 98
Replies to This Discussion
-
Permalink Reply by s b on -
Wild dream, by far, impossible to implement AND with several major flaws:
Taxes only those holding nominal balances (dollar denominated assets such as the dollar bills that are in poor people's pockets, and the treasury bills and bonds that some investors have).
This in turn makes everyone want to hold something else that dollar denominated assets, creating inflation, and reducing the appeal of those assets, eliminating the ability f the government to finance itself.
Inflation in turn destroys the economy by making it impossible to plan based on a steady purchasing power benchmark such as dollar unit or to write long term contracts based on it.
-
-
Permalink Reply by Amy on -
Yeah - other drawbacks I haven't thought about:
- How do you entice people to save for retirements?
- How do you redistribute more money to the poor (e.g. food stamps) if you have no way to know who is poor and who is not (today, it's based on your tax return; but if there's no more tax returns, it becomes an issue to define "poor", and it moves welfare fraud elsewhere without eliminating it)
-
Top Content
Follow us
© 2013 AnalyticBridge.com is a subsidiary and dedicated channel of Data Science Central LLC
