Taxation

[Archon]

If you were in charge of setting up a tax system for the US what, if anything, would you change?
I'd love to see income tax done away with and instead use a fair tax. This would be in the form of a true sales tax. Obviously things would be more expensive, but we would have more money at our disposable. This would probably decessitate cutting some goverment programs, which I'm fine with. It would also allow for the taxing of currently untaxable money. For example illegal aliens and drug dealers would be taxed on whatever they spend. I'd also do something for people making below a certain amount. Maybe send them a monthly check that they could spend however they saw fit.
I just really like the idea of having more control over my own money.
So what about you guys?

 

[Rampage]

I would agree with a small sales tax on all items and transactions, followed by a luxury tax of some sort on certain high-priced items (yachts, six-figure cars, homes over 1 million, etc.). I would also have a low flat tax on income that would begin at about $18,000-$25,000 and have no ceiling. I would also find a way to help the poor (maybe a check, definitely medical coverage and I would limit access for illegals to certain services (schools, Medicaid/Medicare). I would raise the Medicaid co-payment to say $5 -$10 per service and I would put Medicare services on a premium basiis that consisted of a sliding scale. If you are rich and have Medicare, it would be a backstop in catastrophic cases but you would be expected to pay more marjket-rate type premiums.

 

[Archon]

With a flat tax, do you get deductions?
When I talk about a sales tax, it have would be a pretty substantial increase, but it would also eliminate a need for an income tax. I'm not opposed to a higher tax on high end luxury items. However, if you're already taxing at, say, 25% people would still be paying a significant amount. And it still works that people who earn more, and thus spend more, will be taxed more.

 

[Rampage]

NO deduction. If you eliminated those, you could get plenty of revenue with a MUCH lower tax...

I would have a lower income tax than that, and I would not have as high a sales tax as you propose. I would also probably not tax food or non-alcoholic drink in grocery stores, only prepared food.

I would also legalize prostitution and marijuana, and regulate and tax those pretty heavily as well as cigarettes and alcohol.

 

[Harbinger]

NO deduction. If you eliminated those, you could get plenty of revenue with a MUCH lower tax...

I would have a lower income tax than that, and I would not have as high a sales tax as you propose. I would also probably not tax food or non-alcoholic drink in grocery stores, only prepared food.

I would also legalize prostitution and marijuana, and regulate and tax those pretty heavily as well as cigarettes and alcohol.

I tend to agree with Rampage's idea and really, the government would find a tremendous windfall of revenue of prostitution and marijuana were legalized. other developed/civilized nations of the world have done this and the sun hasnt come crashing to earth.