Comments on: Cleanse the Code Project

By: Club for Growth

Club for Growth — Fri, 15 Dec 2006 16:36:32 +0000

Equality Tax: a flat tax for everything...

Various groups are pushing a "Cleanse the Code" tax reform effort, with Senators Wyden and Craig leading the charge. Everybody agrees that the tax code needs reform, though their specific reforms often differ. (a recent Cleanse the Code conference ca...

By: James Joyner

James Joyner — Fri, 08 Dec 2006 17:40:06 +0000

Triumph,

True enough. There wasn't much time for Q&A in this one, unfortunately. And I hadn't seen the statement of principles until late in the call, as it wasn't circulated ahead of time.

By: Triumph

Triumph — Fri, 08 Dec 2006 00:28:17 +0000

Triumph: That’s sort of what I was getting at. The principles are broad enough to get buy-in from those far flung groups but actually turning them into a tax code will create strong disagreement.

I recognized that, James.

What I wonder is why you bloggers don't call BS on them? I don't mean this to be directed at you, James, But the beauty of the blogosphere is that you guys can ask tough questions that, perhaps, the MSM won't.

By: spencer

spencer — Thu, 07 Dec 2006 22:41:57 +0000

Form 1040ez is a simple one page form that the IRS estimates that around one half of all tax fillers will use this year.

We have a complex tax code because that is what people want despite the problems everyone protest about. No one believes or trust the system to actual deliver on promises that giving up a tax deduction will lead to lower taxes. In economics this is call revealed preference.

By: Patrick McGuire

Patrick McGuire — Thu, 07 Dec 2006 22:21:55 +0000

The Fair Tax would have the advantage of making all the illegal aliens taxpayers. Also, drug dealers, foreign tourists, foreign diplomats, among others.

By: TheHat

TheHat — Thu, 07 Dec 2006 19:14:25 +0000

Progressive is not fair. It always lends itself to raising rates on the 'rich'.

I want the Bortz backed Fair Tax. Period. End of Tax Story.

By: James Joyner

James Joyner — Thu, 07 Dec 2006 18:48:10 +0000

Triumph: That's sort of what I was getting at. The principles are broad enough to get buy-in from those far flung groups but actually turning them into a tax code will create strong disagreement.

By: Triumph

Triumph — Thu, 07 Dec 2006 18:46:25 +0000

Wyden wants a “fair” flat tax that is simple yet progressive.

Their "statement of principles" is meaningless. Its just a collection of buzzwords without any substance: "fairness" "fiscal responsbility," "simplification," etc.... Who ISN'T for these things? To show "principles" requires little more than endorsing platitutdes. Maybe they did cover specifics, James, but it figures that the only thing coming close to specifics was the tax-and-spend Democrat Wyden's endorsement of a tax hike through a flat tax.

By: Steven Plunk

Steven Plunk — Thu, 07 Dec 2006 18:45:30 +0000

I would expect any change away from the "hidden" income tax to breed discontent very quickly. Presently a refund of overpayment is looked upon as a gift from the government. Consumption taxes would have no "gift" every year and we would hurt a little with every trip to the store.

Consumption taxes could also hurt businesses like mine. I buy almost a million dollars worth of diesel fuel a year and would pay an additional tax whether I turn a profit or not. At least now I only pay in the profitable years. Businesses with high materials costs could really get hurt while professionals like attorneys and accountants along with low material usage service companies would make out like bandits.

Eventually equilibrium would be reached and adjustments in markets made but the transition period could disrupt the economy.

For now I would concentrate on taming the beast we have before introducing a new one.