Sunday, October 16, 2011
Libertarian Economist Peter Schiff: On Tax Reform and Occupy Wall Street: What to do
I'll give Republican Presidential Candidate Herman Cain credit for actually coming up with a real Tax Reform plan, which is basically a Flat Tax. Which I'll get into why I'm against later, as well as Herman Cain making the Republican Presidential Debates. Worth watching on his own with his One Liners and being a more serious Presidential Candidate then what I was expecting. Especially for someone who's never held or run for Public Office before. Except for serving on the Kansas City Federal Reserve, with the Federal Reserve being very unpopular in the GOP right now. But again he's offering another version of the Flat Tax, which with every Flat Tax thats ever been proposed. And this is not Class Warfare but a simple basic fact, has been a Tax Cut for the wealthy. And a Tax Hike on the Middle Class, because a lot of Middle Class workers are now paying 10-15% in Income Taxes. And then another 6.2% in Payroll Taxes and perhaps 15-20% in Capital Gains taxes and then there's the Gas Tax. And these are just the taxes that Middle Class workers pay at the Federal Level. To Uncle Sam no one other then an socialists favorite uncle. And with the Cain Tax Plan, the 9 9 9, thats 9% in Income Tax, 9% in Sales Tax and another 9% in Payroll Taxes. In case your not real quick in math 27% in Federal Taxes that the Middle Class will now owe per year in taxes.
Middle Class workers would see their taxes at the Federal Level go up, while the wealthy and they generally pay before deductions and credits. Pay around 30% or more in Federal Taxes, so thats your Tax Hike on the Middle Class and Tax Cut for the wealthy. Thats what Class Warfare looks like and is also a form of Redistribution of Wealth. I don't have a problem with cutting taxes for the wealthy as long as we eliminate their Tax Loopholes. Which is the main problem with our current Tax Code. And then we do the same for the Middle Class as well, thats called the Lower Rates no Loopholes Tax Plan. I'm sure there's a better name for that Tax Plan but hopefully you get the idea. If we were to stick with the Income Tax, then thats the reform I would be in favor of. But my prefer Tax Reform plan would be based on taxing what people spend and give them the liberty to decide what they pay in taxes. Based on what they spend which I believe would force Tax Payers to be careful with how they spend their money. Because they would know every time they purchase something, they would have to pay an additional price for it.
A Consumption Tax couldn't be Revenue Neutral without first reforming the Federal Government. By making it do less and making it more efficient, because a Consumption Tax would bring in less revenue then the current Tax System. And you also have to make it progressive so its doesn't nail Low Income people. By taxing more on Luxury Items, fill in the blanks then you would tax things that people need to survive again fill in the blanks.