Dolce far niente

"Too much law make people mad." "Hawai'i"

Sunday, July 10, 2011

Clarification

The E-R edited one sentence out of my recent letter, and I consider it key to explaining my proposal to tax everyone's annual income exactly the same percentage. I stated that we should additionally eliminate all deductions and exemptions, and assess the tax equally on everyone's gross income.

Let us say that the taxable level of income is that just above full-time minimum wage. For the sake of argument, let us say that everyone earning that little needs every penny to keep body and soul together. Then, let us pick an arbitrary percentage, say 5%. Using that figure, people earning $20,000 would pay $1,000 in income taxes. Those earning $1 million would pay $50,000, with the majority of taxpayers somewhere in between. There would be no loopholes or shelters.

I specifically mentioned that marital status and dependent children should not figure into tax calculations. I was married while serving in the U.S. Army in France. We had a religious service performed by an Army chaplain, and, at the insistence of the host nation, a civil ceremony in the office of the mayor of the village in which we lived. At neither of those rites did we give one moment's thought to the tax implications of our action. Later, we had four children, and at no time did we ever say, "Look at those tax exemptions; let's have some more."

The tax code contains hundreds of other ways to allow some people to gain the advantage over others. All that language should be eliminated. A fair percentage across the board should mollify even the most virulent of class enviers.

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