Taking all I have wrote this week and from the past on taxes, I
present to you an ideal tax structure in my opinion that is fair, and the least
obtrusive to people. Let's begin.
The ideal structure: First of all, all forms of taxation
save sales and property taxes will be banned by law. This is to prevent
the chances of the government bureaucrats getting too greedy.
Sales taxes will be on the final
sale of goods exclusively. So only the consumer pays at the retail level,
not businesses who buy the couch to sell it later or the car company buying
parts to build their cars. As such, with taxation and cost associated
with those taxes out of the way, goods will become cheaper to buy or remain the
same price once the sales tax is applied. It will need a constitutional
amendment to apply so that all goods that are sold in the United States are
taxed and that they are taxed all at the same rate without exception.
Sales taxes shall be exclusive to the Federal budget and can act as an economic
indicator for economic strength, and the federal government will now have a
vested interest in increasing commerce in the U.S. as it will actually increase
their revenue. Needless to say, no one can escape paying such a tax and thus
even criminals will pay along with tourists.
Property taxes will be on the square
footage of the land owned by a property owner. It will not be based on the
value of the home or the actual living space in the home, but will be solely
based on the land owned. This insures that the tax is fair as if you own
a big house but little land, you are paying more over potentially someone with
a slightly smaller home with lots of land. This ensures that there are no
fluctuations in tax values and thus protects governments from lost revenue and
the property owners from being unable to afford to pay their taxes from
year to year (basically they know exactly what to give each year). This
tax shall be exclusive to the local governments and be based on paying for the
upkeep of roads, police, firehouses, public schools, public hospitals and the
maintenance of the sewers, water and power distribution systems.
Basically, the essentials will be paid for where applicable via this tax.
The State government will also be funded through property taxes, except
that they will get a portion of the money collected per year from each local
government from the property tax system. In this case, the local
governments give the State governments a portion equal to the percentage of the
population of the State within their borders. So if Nassau County has 15%
of the New York State population in it, they will give 15% of their revenue to
the State capitol. Also, the State government upon receiving all this
money must carry on a budget that exists within the confines of the money
given. As such, they cannot spend more money than was given to them.
However, their budgets would be low as they need only provide for funds
for State parks, and their portion of the interstate highway system.
If you notice I do not include welfare and the funds to pay for
the salaries of the politicians (Representatives, Mayors, Governors Etc.) in
this tax system. I separate them for their importance. See below for how they will work.
In this case, politicians in a given
government (State officials with State, local with local) will not get any
retirement ever, and their salaries will be based on the average salaries of
the people living under their governance. So if the average salary is
$8.00 an hour, they will only receive $8.00 an hour in salary, but will only
get that money at the end of the year. Additionally, if the average
salary fluctuates over the course of the year say from $8 to $10 to $7 and
hour, then they will only get the equivalent of $7 an hours’ worth in money.
This is to ensure that if they want to get more money, their areas must
be economically prosperous while removing the potential corruption of them
increasing their salaries by taxing people more so that they may make a few
extra dollars more.
With welfare, the poor will be able
to be traded amongst the communities with job training and searching included
to find them a living area where they would not end up homeless. In the meantime,
people on welfare will maintain government facilities, and act as volunteer
police, firemen and as other government personnel while receiving a small wage
to help them afford to live (basically doubling as job training, and for
providing welfare). In this case they will act almost as free labor to file
documents, clean government buildings including police stations and hospitals
and as laborers to maintain infrastructure while under the supervision of
people who know what they are doing. This insures they get a wide range
of experiences to aid them in becoming skilled laborers. If necessary,
their property taxes will temporarily suspended to help them as well.
Additional support can come from the State government as well if
requested by the local government, but will be done on a case by case basis.
(Note: if a modern debtor’s prison
comes to pass, that will be State run, along with all penitentiaries [unless
otherwise approved by the State to be opened by a private business] in the
borders of a State. Note 2: Mental hospitals are to be run by the State
[unless otherwise approved by the State to opened by a private business], and
will also handle addiction cases if the State does not provide for special
clinics where addicts can buy their drugs safely and use them safely there
[these clinics are run by the State government as well, unless exceptions are
made])
Conclusion: This is my ideal system. Just
two forms of taxes for us to worry about. Sales taxes we pay based on how
much we spend, and property just goes to local government, thus eliminating the
State taxes themselves. Each ends up respecting their boundaries and this
limits corruption and provides incentives for governments to allow for and even
sponsor economic growth. The State government mind you maintains its law
making body status, and so does local to a degree, though the extent will have
to be addressed as I write from the standpoint that we remove as much
government as possible and even the laws capable of being passed by
governmental bodies are severely limited to the obviously wrongful act like
murder, rape, etc., but does not make other things illegal like limiting the
height of a building, or licensing people to own a business. The State
should in my opinion should have the sole power to license very specific
professionals like doctors, and lawyers. Can such an ideal system be
achieved that just boarders on anarchy but does not step into the chaos of
anarchy? Yes, but it will take a lot of effort and both public and
political will. In this case, we all need to basically become libertarian
which will be hard as people have different values and tolerances. All we
can do is provide information, and hope people come to the same conclusions me
and my fellow libertarians do.
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