By Kevin A. Stoda
As currently I am a major on-line Republican candidate for President of the United States this 2008, I was happy to see that a Republican, namely Mike Governor Huckabee (R- AR), has advanced a new tax proposal for congress and the American people during the ensuing days of elections across America.
However, the solution he offers is far too simple: a national sales tax. It would also not lead us to get federal spending under control in many areas
The obvious problem with any such simple tax is that it is unfairly across-the-board or flat. This leaves the poorest of Americans paying light-years more than the wealthy in America for the simplicity of the tax.
In short, any flat tax brings the poorest Americans into the realm of paying the greatest per-capita share of any tax burden--in terms of crushing poor peoples’ dreams to climb out of a cycle of poverty and extinguishes future hopes and ability of the poor to have access to savings and investment opportunities.
For example,, under Margaret Thatcher the UK voters accepted a flat-tax some two decades ago, and since then most of the poorest have had to flee their jobs and housing in various booming urban centers of the UK.
Other Brits in rural areas have had to go to the cities to look for better paying jobs. Now the UK is still more urban than it was before Thatcher took office—possibly the most urban of any nation in Europe—and the U.S.A. is already following suit as more and more rural poor have to flee to urban areas to gain much better per capita earnings to keep up with the rest of America.
Do we wish to continue to depopulate so many portions of the USA in the 21st Century?
In sum, do we want to have a flat sales tax which (1) disproportionately harms the poorest and (2) continues to depopulate rural America?
AN ALTERNATIVE PROPOSAL: Cutting Income Tax into Thirds
I suggest scrapping the complex and unfair income tax scheme we have in the USA and advocate replacing it with a clear cut graduated tax—not a flat tax—on every adult in the United States who is eligible to work and maintains employment.
A graduated tax system would apply equally to companies and individuals:
--1% tax on first $15,000 earned
--2% tax on second $15,000 earned