I read a really great op ed in The Wall Street Journal from Ari Fleischer today. The piece is entitled the same as my blog title: Everyone Should Pay Income Taxes. Although, I am not totally in favor of some of his political ideas, the premise is sound.
I am a proponent of a flat tax system, or tier max tax system. Let me explain...
In a simple flat tax system, everyone pays the same amount, or percentage, for example 10% of their income. This is simple to determine and pay. If we exclude tax credits, or deductions, it is generally considered fair. Those who oppose the system say its not fair that they must pay if they make more. I contend the person who makes $10,000.00 is more affected than the person making a million.
The other system may be more palpable to some. It requires that everyone pay a percentage of their income up to a maximum amount. For example, we all pay 10% up to a maximum of (for the sake of discussion) a tax bill of one million. Anything above ten million in income is not taxed.
These numbers would need to be adjusted to compensate for our budget requirements.
In Mr. Fleischer's article he mentions abolishing estate taxes. I agree. Why punish families for growing wealth over generations. This is what America is all about.
He concludes his article with a wonderful quote:
"Its funny what happens when everyone pays the bills; Americans may want less spending so they can pay fewer bills."Perhaps this will force some fiscal responsibility to reduce our $2 trillion dollar budget deficits.
Labels: budget, income taxes, taxes