A few days late, but as I promised in my last blog, here is a simple solution to our current deficit. CUT INCOME TAXES BY 100%!
"Oh, my he's gone crazy!"
"He said he had a simple solution, not a STUPID one."
Please let me explain. 1994 was a pretty good year, especially compared to 2010. If the U.S. eliminated the income tax completely and returned spending levels back to 1994, the corporate tax and tariffs/fees would be enough to cover all spending.
Now what do you think would happen if there was no income taxes? For one, we'd go into an immediate economic boom that would more than match the reduction in gov't spending. Second, corporate profits would skyrocket, further increasing gov't revenue, allowing us to pay down debt.
"Wait one minute, it can't be all roses and chocolate cake!"
And it's not. Defense spending, welfare spending and all spending in general would take a huge hit. Politicians will argue we're being mean towards the poor and sacrificing our security. I disagree on both points because the poor will find work in the new economy, even if it takes a year or two to really get rolling. I also believe our wars in the Middle East are making us targets of future terrorists, not safer. Obviously both points are debatable.
More importantly only ONE man is needed to end the income tax - the President of the United States. He/she doesn't need the Congress to pass a law, all the power is in one person's hand.
"Now you're talking real goofy, the Congress makes laws and the income tax isn't just a law it's an Amendment!"
All the President has to do is tell the American people NOT to pay their Federal taxes and that anyone not paying their taxes would be pardoned. Just like Carter mass pardoned any draft dodger from the Vietnam war, with one stroke of the pen the Income tax could be a dead issue!