For all the talk about how important this election is, you don't hear a lot of talk about big ideas. Back in 1992, we were talking about the deficit and health care. This year, even though those are big issues again, you don't hear either candidate talk passionately about these issues.
Ted Halstead who heads the New America Foundation and is co-author of a must-read book The Radical Center, has come up with some big ideas of his own that either candidate could use as a winning strategy. Among some of the big ideas are:
Universal Capitalism. This would give every American newborn financial assets at birth making every kid a "trust fund baby."
Universal Auto Health Insurance. Halstead thinks that rather than having a single payer system, why not make health care mandatory like car insurance? Subsisides would be given to those who can not afford the premiums.
Out with the Payroll Tax, Hello Consumption Tax. For some reason, no one ever talks about payroll taxes and that takes a big bite if you are a moderate income worker. Halstead thinks that scrapping the payroll tax and starting national consumption tax is a better way to go.
I think Halstead is kidding himself if the thinks Bush or Kerry would take these ideas to heart. Both are bound by special interests and are too timid by themselves to do it. What is needed is a citizen movement to take these ideas and give them life. Civil Rights did not happen because leaders decided it was time to give black Americans the rights we deserved. Instead, Black Americans marched and protested to get Washington's attention. I believe we need to do that again to get the attention of our leaders.
Posted by Dennis at August 16, 2004 12:44 AMI think that's meant to be "Out with Earned Income Tax", Dennis.
"Payroll Taxes" fund Social Security and Medicare (which if DeLay has his way will be out also - along with the benefits).
Tax on unearned income, corporations and estates are also permanately on the way out if Bush, et. al. have their way.
It sort of works for Texas (though the public school system is suing the State for lack of funds)
But Texas takes more out of the federal treasury than it contributes.
So the Texas model doesn't scale up.
Posted by: dorsano at August 16, 2004 11:05 PMI'm an Enrolled Agent ... that means I do taxes all the time every day. I am one of 30,000 licensed by the Internal Revenue Service and I can hold myself as a sort of tax expert.
Consumption taxes are a very poor way to collect taxes. I am actually against all sales taxes, because they are a form of double taxation (same with property taxes).
If you were to do away with the federal income tax season in favor of a consumption (sales) tax, the rate would be in excess of 20% easy. Want to buy a 200k house? Its now 240k. Want a new car? Add the 20%.
How about plan administration? The feds think they can tack it onto state programs. So this is just another way for the feds to place costs and burdens onto the states without properly compensating thiem.
A national sales tax is a regressive tax. It hurts the mid and low income worker at a much higher percentage than rich people. By percentage, it may seem like the same, but if you make $25,000, you now have significantly less money to buy your essentials. Rich people, on the other hand, have unlimited discretionary funding.