Last year was a triumphant year for gay marriage in California. That means that this year, for many newly wed gay couples, April 15 was the first time they filed their taxes as married couples. I have it on very good authority that many of these newly nuptialed couples are extremely unhappy now that they’re dealing with the infamous marriage penalty.
Considering how politically powerful gay men have become, could gay marriage lead to lower taxes?
And while we’re talking about taxes, Bill Whittle offers a sensible tax policy, one that would give all citizens a stake in America, while ending the current policy of taxing the producers right out of existence:
Flat taxes, once I understood how they worked, were one of the stepping stones on my way to conservativism. Twenty years ago, a brilliant conservative managed to explain to me how an across the board 10% sales tax would work. When he first told me about it, I got ruffled, pointing out that this was regressive tax that would hurt poor people. He shook his head sadly at my ignorance and explained that the most that poor people would get taxed, if they spent every penny they had, would be 10%, which is a reasonable amount to pay to have a stake in this country. (This was 20 years ago, before 51% of Americans paid nothing at all.) Moreover, he said, the bulk of taxes would come from those who aren’t poor, because middle class and rich people buy more. Everyone buys staples, but it’s the classes above the poverty line who have always — as a practical matter — bought into the American dream.
A 10% tax wouldn’t be high enough to deter high income spending, especially if there were no other taxes, so middle and upper class Americans would have an incentive to invest in the economy through purchasing goods. In the meantime, a 10% sales tax might be high enough to encourage a poor person to save more, rather than to buy inessential products, helping the poor person to stay solvent.
Certainly, a flat sales tax (or any flat tax) would be cheaper to administer than our current tax system. If it unleashed a rising tide of prosperity, it would bring in more revenue. On the other hand, if it brought in less revenue, it would stop rampant government spending (this was also before debt ceiling wars).
Bottom line: Anything more simple and more fair than what we have now is a better tax system.