Tuesday, December 13, 2005

The Business Tax

The latest Presidential panel to reconsider Tax reform produces only a formula for further tax complication, and the current Bush has decided to put off Tax reform. Conservatives want Tax reduction without Spending reduction, Liberals want Tax increases to match Spending increases. Bush and other graduates of Reaganomics all believe Government debt means nothing. We drift into a greater proliferation of Taxes, Tax concession, Tax rebates, and Tax remissions which defeat Tax revenue collection of sufficient magnitude; all the while Middle-Class taxpayers are ground under by excess tax payments. Everyone, except Congress and President, think Congress should stop Spending.

This Author believes all taxes should be eliminated (at least at the Federal level) except for a Business tax based upon volume of Sales (in Dollar assessment). There are a number of reasons for this decision: Business will pass all taxation onto the Consumer anyway; Demand and Supply Curves will access the exact tax on all Products, based upon Business desire to maximize Sales; Private Sector Accounting holds the greatest efficiency in spreading Tax impact; higher charges to the Consumer will limit the aggregation of Consumer Debt; and pressure can be applied to Legislators to apply revenue-generating rates of Taxation. lgl

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