Saturday, May 05, 2007

"Fair" tax is very UnFair

Recently there has been a rash of "Fair" tax proposals (as if the label "Fair" would make them so), mostly around the idea of an across the board flat tax on sales, and the elimination of the Income tax, and the abandonment of Corporate taxes. This is a position favored by many on the Right, but also Senator Mike Gravel who is running for the Democratic presidential nomination.

How far we have come when it was proposed that a Corporate taxes could be raised to the point that income and sales taxes could be eliminated! If the resulting wealth caused demand to rise to pay for the extra tax so be it, if not then the Paris Hiltons of the world could afford the difference.

In any case the point needs to be made-ALL Sales taxes are regressive! You can game the system to make them a bit less so by eliminating them on Food, Rent and perhaps a few other things, but a Poor person paying 5% tax on a $100 car is paying exactly the same PERCENT tax as a rich person paying 5% tax on a $100,000 car. What they are not paying is the same PERCENT of their total income, as the $100,000 car is likely to be a very much smaller percent of income than the $100 car, and there will have to be many more $100 cars as they will not last well or hold value as the very expensive case.

Encourage the Poor or even Middle Class to save? They cannot, rising prices and stagnant wages leaves most struggling on the edge of disaster, while debt of all sorts chews away at the bit of edge they have. Any preference to save or invest will go vastly to those who already have no financial problems.

Collecting a sales tax also involves hugely more paperwork, and/or will be hugely more scammed, as it already is where there is a state sales tax, and mostly by the rich who can get winks as the do so.

How to do you do a fair tax
? it is very easy! Everybody gets zero tax on the first $10,000, no matter your total, add 1% on each of the next $10,000 so 20k pays $100 ( 0 + 100), 30k pays $300 (0 + 100 + 200), 100k pays $4,500 ( 0 + 100 + 200 ...+900) still a total rate of only 4.5%. Only those people with incomes larger than most countries would pay huge taxes as the taxes on the smaller amounts would be taxed exactly the same for everyone who made it to that place.

Corporations might have slightly different numbers but would also be similarly taxed according to the size of the total corporation, that way the smaller corporation would have a competitive advantage in taxes to offset the disadvantage of the power that scale confers. (if you think that scale is efficiency and not power, think of efficiency of scale as a ten acre hamburger stand, and power of scale as McDonalds)

There is no magic market, Money provides power and power provides money, it is a one way ticket to a feudal system. Only by Government intervention to act as friction where needed at the top and oil where needed at the bottom can a balance of real civilization be found. Money at the top is power and needs only to be restrained, it will still prosper in spite of restraint. At the bottom is pent up energy that can explode in creativity if only it is enabled, it is the only place that really good ideas come from, they will never come from the self satisfied.

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One evening an old Cherokee told his grandson about a battle that goes on inside people.

He said, "My son, the battle is between 2 "wolves" inside us all.

One is Evil. It is anger, envy, jealousy, sorrow, regret, greed, arrogance, self-pity, guilt, resentment, inferiority, lies, false pride, superiority, and ego.

The other is Good. It is joy, peace, love, hope, serenity, humility,
kindness, benevolence, empathy, generosity, truth, compassion and faith."

The grandson thought about it for a minute and then asked his grandfather:

"Which wolf wins?"

The old Cherokee simply replied, "The one you feed."

from an old tale.

The Golden Rule
“That which is hateful to you do not do to another ... the rest (of the Torah) is all commentary, now go study.”

- Rabbi Hillel



The self made man just isn't admitting how or where he came by all those parts

---FreeDem---- Aug 2005


If a man tells you that the Government cannot accomplish anything of value, then voting for him would be like hiring an Amish Auto Mechanic.
If they don't believe in the concept, they are more than likely to do a very poor job of it.

---Bob Danforth Sept. 2009


Republicans never meant to cut government waste, fraud and graft, from the get-go their plan was to organize, monopolize and privatize waste, fraud and graft.

They see the civil service as meddling “middleman,” who interfered with the free flow of cash from taxpayers into corporate coffers. Their intent was to eliminate the “middleman” as an obstruction to corruption.

---Unknown rabblerowser Feb 2007


No one can terrorize a whole nation, unless we are all his accomplices.

Edward R. Murrow

In the beginning of a change, the patriot is a scarce man, brave, hated and scorned. When his cause succeeds, however, the timid join him, for then it costs nothing to be a patriot

Mark Twain


You see, we often get noncreative leaders, people most interested in preserving their own positions. They flock around centers of power. Such centers attract people who can be corrupted. That is a more descriptive observation than to say simply that power corrupts and absolute power corrupts absolutely.

If you are corruptible and your imagination is confined to worries about loss of power, you exist in a self-destructive system. Eventually, as all life does, you must encounter something you did not anticipate, and if you have not strengthened your creative resources, you will have no new ways for adapting to change. Adapt or die, that's the first rule of survival.

The limited vision of noncreative people is not difficult to understand. Creativity frightens the unimaginative. They don't know what's happening. Things new and unexpected arise from creativity. This threatens "things as they are." And (terrible thought) it undermines illusions of omnipotence.


Herbert 1984 (the year not the book)


"News is what powerful people want to keep hidden; everything else is just publicity."

....Bill Moyer


Just as having only a hammer makes every problem either look like a nail, or as something irrelevant, our very technological skills have had us look there for explanations and ignore reality it cannot deal with. With our powerful hammer, we seek only nails, and dump the rest as dross. Not all questions involve hammers, not all answers are nails.
-- Freedem---Nov., 2006

My issue with Atheists is not that they have no God, there are many religions that have no God, but that they have no religion.
-- Freedem---Nov., 2006

__Note: by this I mean that there are many things religions do besides the discredited "science" and self serving promises (give me your money and God will hold and pay the note), many like charity or fellowship, even social accountability can be very good things not requiring a God.


Many have been very disappointed that their "God-critter" was not to be found as a technology swimming about in the shallower pools of knowledge. So in the obsession basic to our culture, we search ever deeper and more difficult pools, and always the "God-critter" seems to wink at us from the pool just beyond.

In the process we have found technologies beyond the wildest dreams of our most sophisticated ancestors. The great joke is that the "critter" never existed except as the pools themselves.

----Freedem --- Oct 2006

Indeed I do think that many folk, believe all kinds of stuff from the actually true, to the utterly illogical, with no personal discernment one from the others. But that would hardly make any of them a scholar to rely on, any more that one should get their theology studies from a door to door salesman, offering "get out of hell free" cards, on special because the creator of galaxies in greater numbers than beach sand, nonetheless has an ego so weak He cannot exist without shamelessly excessive psychophancy from a major portion of the inhabitants of this particular dust speck.

----Freedem ---June-2007

More to come