Comment: Gentlemen.... Since the writer of the LA Times wrote in her collumn that you could (possibly) be open and receptive to some ideas here is my "2 cents comment" regarding your endeavour of changing the tax code.... Let me start by congratulating all of you... Indeed by tackling this problem of enormous complexity you may create more than a reform but instead you really may start a real "quiet" revolution which will reverbate all over the world..... Let me surmise my position: The so- called "Income Tax" is certainly the most unfair of all the taxation systems because it taxes the "Human labor"... Labor in itself is the opposite of comfort and relaxation... Depending of one's line of work ,which can be more or less demanding, the experience can be more or less (physically and psychologically) taxing on the individual performing his line of duty... Financially taxing the product of this labor is the equivalent of kicking an already knock down adversary..... It's basically "UNFAIR". Its the equivalent of the famous "Double Whammy". ..... I realized , reading different publications that nobody comes with the most important figure: What is the percentage of "Direct taxes " compared to "Indirect taxes " in the Federal budget ? Only when this question will be properly answered shall we be able to have the proper basis for an open discussion: "Is this (Evil) income tax necessary to fill the vault of the federal government?" Or, can we get by , by resting only on a consumption tax? In my view, this is very possible...And feasable! For exemple in France where I studied economy the direct income tax represented only 4% of the global budget of the Nation .... In other words 96% of the budget was covered by the "Added Value Tax" and other excise taxes.... Nobody knew it! The Socialist Government did every it could to avoid the dissemination of such an information... The reason rests on the fact that the "Income Tax" has a political function : It's an EGALITARIAN tool which has nothing to do with the economic needs of a country but which exist just to make the poors believe that there is a "Social Equity" guaranteed and enforced by the Government. The income tax system becomes an electoral tool in the hand of the government. To gain more voices on electoral days , the government increases the income tax on the "Richs". This indeed is pure demagogery , but it works well for the politicians who want to stay in power...And this is part of the political game in Western Europe, more specifically in France.... The result of this situation ( This added to many more, which we cannot adress in this forum) is a complete stagnation of the European economy, a huge unemployment and a total demoralisation of the Nation.... Historically speaking : The system of direct taxation of the product of the labor was instaured in the U. S. right after World War One, and started as a " Voluntary Tax" Paid only by the most afluent citizens.... Wouldn't it be the time to reverse back to this pre-war era, and convert to an indirect system of taxation? It seems morally justified, econnomically viable and politically doable. The time of income tax has passed ,it's now time to literally "Revolutionise" the system... A simple change in the rate of taxation will NOT do it.... The U.S. has to take a giant step and indeed will lead the world in a general revision of the different tax codes, all over the world. Again :American true democracy will lead the world... BY EXEMPLE and not by FORCE. It will be a huge move! A drastic revision and simplification of the US tax code, leading toward the suppression of the totally unfair "Income TAX" would probably remain in history as the most significant advance and democratic move of the last one hundred years. Thanks for your attention Claude R. Cahen MD Best regards CLAUDE R. CAHEN MD |