Tuesday, February 11, 2014

Jon Perr — Value Work? Then Tax Capital at the Same Rate as Labor

Republicans have a new talking point. Because the latest analysis from the nonpartisan Congressional Budget Office forecasts that the Affordable Care Act will give some workers the freedom to work fewer hours or retire early without the fear of losing health insurance, conservatives now regurgitate in unison, Democrats don't "value work."
PERRspectives
Value Work? Then Tax Capital at the Same Rate as Labor
Jon Perr

Should be, if you value work, don't tax work (productive contribution), tax away unearned gain (economic rent).



2 comments:

The Rombach Report said...

I agree. Tax labor & capital at 10%. Provide a generous standard deduction that would make a family of 4 exempt from paying any income tax on the first $50K of income. Also, tax interest income, dividends & corporate income at 10%. Tax social security at 10%, with 5% paid by employee and 5% paid by employer, eliminate the income ceiling (currently $113K) and means test social security benefits. Finally, when it comes to departing this world, tax estates at 10% but make the first $5 million exempt.

My guess is that this simple 10% approach would probably create a sizable deficit at first and would also drive such a a robust economic expansion that before long labor would be in short supply and talk of raising the minimum wage would be in the rear view mirror. It would probably put a lot of tax accountants, lawyers and lobbyists out of work, but they're a smart and resourceful bunch and will likely find a way to adapt to the new prosperity.

Roger Erickson said...

If this simplistic idea gets some traction, surely it'll force a shakeout (along gang lines) among the Control Frauds dominating both parties.

Is the GOP core labor & industry, while the DNP core is now big finance?

We'll see who picks which poison ... or tries to keep this issue off of both platforms.