The US tax code is horribly complex, needlessly wasteful, socially unfair and economically destructive.
What's the alternative? Around the world, some of the fastest growing small economies owe their prosperity to a flat tax. In this video, Dan Mitchell of the Cato Institute presents a quick survey of the global flat tax revolution.
Wednesday, June 4, 2008
The Flat Tax,
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2 comments:
While cognizant of the benefits of lowering the income tax rate as proposed by "Flat Tax" advocates, the actual codes do not achieve the goals. As stated at 2:59 in the video "There's no nation with a pure Flat Tax"(I believe the quote to be verbatem, but could only write so fast. There is no intent to distort). With no pure flat tax, and politicians being politicians, history indicates each system will grow more and more cumbersome and distorted over time. The question is how soon they will grow into the bloated, inefficient codes such as the US now struggles under. The US Internal Revenue Code was reduced to two income tax rates in the late 1980s. There have been thousands of changes to the tax code since that last revision to "flatten the rates"
Jack, you are absolutely right. The political propensity to tamper and tinker is as reliable as the commercial propensity to truck, barter and trade.
However, if we were given the choice between what we have now and what we had then, we should choose what we had then, even knowing that it would eventually turn into what we have now.
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