Raising Tobacco Taxes
r Raising Tobacco Taxes
Congress and Legislatures around the USA, lets try to learn from history. Do not tie your tax survival on a product that people may or may not use with regularity. As states saw and DOT saw with the gas crisis, taxing a commodity that can fluctuate is not smart. In 2008-2009 when drivers cut back on miles driven the gas tax dropped tremendously and all of the sudden there were gaps and debts. Why, because the tax was tied directly to something that is far from concrete. This is the exact same event as a tobacco tax. This tax is already insanely high, to the point it should almost be called an 'internal tariff'. There is a very clear, and very simple way to close budget gaps.
FLAT TAX or Federal purchasing tax. Stop thinking about involved and confusing ways of taxing citizens. Simply have one Federal Government flat tax rate on everything that is purchased, aside from food. Revenues would overflow and gaps in states would be gone as there would be more tax dollars floating around to be claimed. Remove the income tax, replace it with a FPT (Federal Purchasing Tax). You can't show me one economic model where that plan doesn't raise more revenue than a progressive tax. The key issue with a progressive tax is a large bulk of possible tax payers pay no taxes. And thus, the burden is shifted to another bracket. Nothing could be more un-American than our tax structure.
Would a FPT initially be a shock to the system, yes. Would it have to be incremental, quite possibly. Would it generate more revenue, absolutely. Is it sustainable, absolutely. Does it make a create talking point to those who have paid no income tax, absolutely NOT. And a FPT is one form is in place already. How do most states generate their revenue, state sales tax. What do you think that is? A flat tax. But what states have done is mixed the taxes having both a progressive income tax and a sales tax, that should be illegal!
Congress and Legislatures around the USA, lets try to learn from history. Do not tie your tax survival on a product that people may or may not use with regularity. As states saw and DOT saw with the gas crisis, taxing a commodity that can fluctuate is not smart. In 2008-2009 when drivers cut back on miles driven the gas tax dropped tremendously and all of the sudden there were gaps and debts. Why, because the tax was tied directly to something that is far from concrete. This is the exact same event as a tobacco tax. This tax is already insanely high, to the point it should almost be called an 'internal tariff'. There is a very clear, and very simple way to close budget gaps.
FLAT TAX or Federal purchasing tax. Stop thinking about involved and confusing ways of taxing citizens. Simply have one Federal Government flat tax rate on everything that is purchased, aside from food. Revenues would overflow and gaps in states would be gone as there would be more tax dollars floating around to be claimed. Remove the income tax, replace it with a FPT (Federal Purchasing Tax). You can't show me one economic model where that plan doesn't raise more revenue than a progressive tax. The key issue with a progressive tax is a large bulk of possible tax payers pay no taxes. And thus, the burden is shifted to another bracket. Nothing could be more un-American than our tax structure.
Would a FPT initially be a shock to the system, yes. Would it have to be incremental, quite possibly. Would it generate more revenue, absolutely. Is it sustainable, absolutely. Does it make a create talking point to those who have paid no income tax, absolutely NOT. And a FPT is one form is in place already. How do most states generate their revenue, state sales tax. What do you think that is? A flat tax. But what states have done is mixed the taxes having both a progressive income tax and a sales tax, that should be illegal!
Comments
Post a Comment