FIDDLING WITH THE TAX RATES…DOES NOT REFORM MAKE…
(…it’s just doing symptomatic medicine rather than going for a cure)

Every twenty years or so, our career politicos’ reaction to the decibel level of taxpayers’ grumbles about the tax code, is to scramble for ways and means to come up with a little bit of honey to help that “tax medicine” go down…and reduce that loud grumbling back down to just a soft whine.

Invariably the first thing they go for is to tweak the various tax rates for individuals and business alike. Of course, this does nothing for the tax payers since fiddling with the various tax rates does not reform make. That’s just doing symptomatic medicine rather than going for a cure…but it lets them all feel better afterwards…while the rest of us are still left sucking eggs.

Only one person running for high office ever came up with any kind of a commonsense and equitable tax reform proposal, and that was Mr. Steve Forbes when he was a candidate for President. That is…to have a FLAT TAX RATE on everyone’s income. An idea which was booed by all at the time…so he never made it to the finals for that election.

Ten years ago, when this same issue was being yapped about, we went him one better by outlining a reform package based on a FLAT TAX ON GROSS INCOME, with few deductions, and spreading the tax load more equitably between individual and business taxpayers than the way things are now by having a number of brackets for each category. That not only made it progressive but also broadened the tax base besides. In short, all who were members of this national club of ours paid their membership dues (taxes) in proportion to their means.

Combined with that we also included a provision for what we called – The 5% Solution- to progressively reduce our national debt, increase our bullion reserves to help “collateralize”, it, and, cap Congress’ addiction for deficit spending as well. Since it was all tied directly to our GDP annual growth rate, that meant that as it increased over time, so would what would be available year to year, to apply to this provision.

Well, while such an approach might make economic commonsense, it breaks too many political “rice bowls” so no one in either the Oval Office or the Congress will ever consider such an idea, while we taxpaying voters will just continue sucking eggs, as they keep on keeping on with the way things are today.

Meanwhile they…tweak…twitter…tweak…and twitter away…at our expense.

CENTURION