Seems as if the idea of eliminating the income tax is catching on in some states (see here and here). This is quite exciting as taxing stuff results in less of said stuff, so eliminating the income tax has the potential to dramatically expand income and growth. It’s interesting to note that the income tax has not existed for that long in the nation’s history; it’s sole purpose in the historical development of the US is pretty much to feed the beast of government thus allowing said beast to continually expand.

I’m not a big fan of replacing the income tax with sales tax (as the two articles above suggest might be done). Again, taxing stuff results in less of it and we don’t want fewer transactions. Also, sales taxes are highly regressive. I am a big fan of property taxes. Property taxes are pretty much the ideal form of taxation since you actually receive something more or less commensurate with the taxation and the thing you receive (government protection and enforcement of laws protecting such property) is actually something that government should be doing (pretty much the ONLY thing that government should be doing). But, regardless, the idea of eliminating the income tax is great.

-JD Cross

 

Advertisements