Tag Archives: economics

Why are taxes a political issue?

Easy solution.   Just tweak them and see what happens?  Duh!

More.  Clearly, taxes should be tied to econometric measures.  Even if there are no changes to current ratios, they should be all be responsive to current “needs”.  In addition, there should be limits, if taxes are rising too much, then other measures are automatically taken to reign in spending.

No need for grandstanding political groups and class warfare, all which hide the fact that these same groups are just trying to grab more of that apple pie.

The real issue

In this connected world, the speed and quantity of information in the government is too slow.   There should be more direct and frequent information flows, an Agile Government.  And, this should be based on objective and measurable data, i.e., real information.

What we have now is nothing new.  In the old days they argued wearing white wigs, today the wigs are gone but the same heads remain.

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999 should be 6789

The Cain 999 tax simplification is attracting attention. Well, it should. In this political climate the major candidates have not been proposing anything bold, just the same phrases, party lines, and lack of answers to specific questions.

But, perhaps the 9-9-9 plan is too bold and as some critics are writing, lays the burden disproportionally on the 99%.

My counter proposal is just as simple, 6789:

  • 6% – income on the 99%
  • 7% – sales tax
  • 8% – corporate tax
  • 9% – income on the 1% rich

That is more equitable. Of course, economists and mathematicians can tweak the numbers. Most importantly, these numbers should be part of a feedback system. Why is everything “fixed” when the world is dynamic?

Based on economic performance and quality measures, the whole sliding scale could be shifted up or down. For example, in an overheated economy it could be shifted up, and in a difficult period, like now, it could be shifted down, such as, 5-6-7-8, etc.

Further Reading

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