The Bookworm Beat 7-7-15 — the “some things never get old” edition and open thread

Woman-writing-300x265None of these links have current dates because they’ve been sitting on my spindle for a while, but each addresses a current issue, and it would be criminal if I didn’t share them with you:

Nevada puts education power back in parents’ hands

People who oppose the power of the teachers’ unions and who believe in parents’ rights to educate their children as they, not the government, see fit, should keep an eye on Nevada, which makes it possible for all Nevadans to opt out of the public school system:

[Read more…]

The Bookworm Beat 6-24-15 — “watching the passing scene” edition and open thread

Woman-writing-300x265I’ve been playing catch-up today, with some success. I managed to get about 50% of my to-do list completed, which is pretty good. And now I get to share with you the fascinating stuff that crossed my computer screen today:

Anyone for a flat tax?

I’m not feeling it for Rand Paul, who doesn’t strike me as being stable enough to be president. However, I do like his idea that we get rid of the entire IRS and go to a straight flat tax of 14.5% (if the pay wall blocks you, try finding the article at this link):

My tax plan would blow up the tax code and start over. In consultation with some of the top tax experts in the country, including the Heritage Foundation’s Stephen Moore, former presidential candidate Steve Forbes and Reagan economist Arthur Laffer, I devised a 21st-century tax code that would establish a 14.5% flat-rate tax applied equally to all personal income, including wages, salaries, dividends, capital gains, rents and interest. All deductions except for a mortgage and charities would be eliminated. The first $50,000 of income for a family of four would not be taxed. For low-income working families, the plan would retain the earned-income tax credit.

I would also apply this uniform 14.5% business-activity tax on all companies—down from as high as nearly 40% for small businesses and 35% for corporations. This tax would be levied on revenues minus allowable expenses, such as the purchase of parts, computers and office equipment. All capital purchases would be immediately expensed, ending complicated depreciation schedules.

The immediate question everyone asks is: Won’t this 14.5% tax plan blow a massive hole in the budget deficit? As a senator, I have proposed balanced budgets and I pledge to balance the budget as president.

Here’s why this plan would balance the budget: We asked the experts at the nonpartisan Tax Foundation to estimate what this plan would mean for jobs, and whether we are raising enough money to fund the government. The analysis is positive news: The plan is an economic steroid injection. Because the Fair and Flat Tax rewards work, saving, investment and small business creation, the Tax Foundation estimates that in 10 years it will increase gross domestic product by about 10%, and create at least 1.4 million new jobs.

[Read more…]

Gay marriage, taxes, and the law of unintended consequences

Gay-flowerLast 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.