What if when you worked and picked up your paychecks you received all the money you earned? Instead of the government withholding a high percentage of your money, you could spend it exactly the way you wanted. This is an idea that has existed for a long time now, but has not been experimented with recently. Instead of income tax, what if there was only consumption tax? I believe this would be a better system for a couple reasons. First, everyone would have more money to spend than with the previous system. For example, even transferring money from one account to another in some instances is taxed heavily. That's your money, and you're just moving it. Why do they need some of it? Secondly, problems such as immigration would be greatly affected as well. Everyone has to eat and buy things right? Now they would pay taxes just like everyone else.
Also, this form of taxing would promote economic growth since everyone would have more money to spend, and would be able to save easier. The only downside I can think of is the government would have less money overall and they would have to find it elsewhere. Honestly, I'd be okay with that though considering the amount of money they waste already.
Anyway, this is just a random idea that occurred to me while I was doing my taxes. So what do you think? Will it work better or worse than the current system? I'd be especially interested in any negative aspects regarding this problem if you have them.
I must say as much as i hate taxes, i disagree with you. Taxes play a very vital role or purpose in the governance and stability of world nations. Revenue, Redistribution, Repricing, and Representation...."The Four "R"s. The main one though you will appreciate, is "revenue", without it you will not enjoy the beautiful roads, hospitals, schools and even indirect government functions like market regulation or justice systems. To crown it all, the democratic system of government that ensures the money is well allocated! Try visiting some third world countries where people share hospital beds or children not getting their rightful educational needs and roads worse than eroded terrains....anyway, you get my drift....these corruptly ruled nations dream to be like America and wish upon the "lifestyle of the rich and famous".....yes, believe it or not, most people would love to live in a prison in America than in the poverty infested and hopeless lives....after all, they will get three square meals, free room and board....well....not that i would want to be in there but, it's heaven compared to what they have to go through.
ReplyDeleteI am drifting off the subject now and getting carried away....but several studies have shown that direct taxation (such as income taxes) generates the greatest degree of accountability and better governance, while indirect taxation tends to have smaller effects.
I understand what you are saying, but I would not agree with you on this one. Taxes are very important. By paying taxes, we pay for any services we use. In order to have sidewalks, roads, schools, hospitals, police…and many other tax supported benefits provided by the government, one has to pay taxes. Generally, the lesser there is money in government’s budget, the poorer the services provided by it. Yes, sometimes we can complain about the way those taxes are spent, but they mostly bring about benefits that people enjoy on daily basis without questioning where those benefits are coming from.
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