Thoughts on Tax

The foundation of any government's revenue is the tax levied on its people, corporations and its imports. These can take the form of tariffs, sales, and income tax as well as other forms of profit vexing schemes. Much of the revenue for the American government is generated from the graduated income tax. This tax is progressive and increases as the personal revenue of the individual or couple increase. This methods intention is to help relieve tax burned on the poor while increasing responsibility on those who profit greatly from our form of free-enterprise. The question I pose is whether or not this is the best way of collecting these revenues? Are we spending appropriately and efficiently on the functions of government that are truly necessary and what are necessary functions of government? This post will open dialogue concerning whether the income tax is the best way of achieve this equality of classes or if another approach would allow for a less punishing form of taxation that would still achieve the goals aforementioned. I propose using a graduated, progressive sales tax and removing the income tax from the people. Food and rent could be exempted from this tax, leaving other goods for taxation. Sales brackets could be set similar to the brackets that measure the percent of income taxation. As the price of a good increases so too does that tax on the item. Each item would be exclusively taxed and not the aggregate of all items. This would allow the higher taxation of those who consume more goods and make the most money. Tariffs would be imposed on imports that would promote the consumption of domestic goods or at least counter the effects of purchasing outside the country to avoid US sales tax. Since the US economy's GPD is based off 75% consumption, the government would be able to tap a (13x.75) trillion source of revenue. This would also promote savings and would reverse the debt culture that has made the US subservient to foreign treasury holders. Turning deficit to surplus should be the first order of business for the US policy makers and paying the ever increasing debt should be its primary goal. More will be posted on this subject in the following days. Please comment and contribute to the conversation. I would be happy to respond to any ideas.