I may actually agree with the left on the need for increased revenues. We just differ on how to go about it, why it should happen and on whom should taxes be raised.
Liberals are throwing every bit of class-warfare, eat-the-rich, anti-success hate speech out that they can to get Americans to buy into the idea that it’s those best able to invest in the economy that should be giving their money to the government instead.
Conversely, I believe that we should start looking to those who are largely neither investing in the economy nor paying anything in income taxes – the 47.6% of earners that pay zero income taxes due to loopholes like earned income credit.
What we need, is a broadening of the tax base. Flat tax, fair tax, consumption tax or a combination thereof should replace our current unfair and highly-progressive scheme. Even in China the lowest earners pay a 3% tax rate on income. Why not here?
Increasing the number of tax payers would therefor generate more revenue and would allow other adjustments to be made. If we want corporations to return, it would make sense to lower corporate tax rates from their current 2nd highest in the world behind Japan.
By broadening the tax base so that everyone that votes feels the effects of their generous leaders’ handing out of money – patterns might change. More voters might not choose a candidate promising more gifts from the treasury when they know it’s coming out of their pockets too.
A large portion of our current electorate is living by the words of the late Senator Russel Long, ““Don’t tax you, don’t tax me, tax that man behind the tree.” when they cry “tax the rich”, “tax the corporate jet owners”, “tax the oil companies”. While eventually, higher taxation harms everyone as those costs get passed down, it isn’t direct enough for most to realize that their voting choices are to blame for oppressive prices at the pump or in the grocery store.
Spending cuts are the right medicine for what ails us today, but it won’t change the behavior of the voters and therefor the politicians if everyone that votes doesn’t feel the impact of their choices. It is far too easy for someone to vote in a Senator or Representative that promises only to raise taxes on someone else. If every tax increase is money off the table for every American, the mentality in Washington would have to change – or get changed.