Rabushka on the Flat Tax

I am a huge proponent of a flat tax. Part of the reason tax reform toward a flat tax in America is because bureaucratic civil servants may have the jobs affect and those that depend on 501 3c non-profit tax deductible donations might be against the Flat Tax. I am certain there are other reasons as well; however tax accounting is not my forte.

Every once in a while I come across a Flat Tax plan. When that happens I like to post it to see if I can elicit a discussion from those of you that know. It has not happened yet.

Here is a link to Econ Talk which has a pod cast or mp3 download to listen to. It is a little over an hour. Listen to it as you have time and tell me what you think of Alvin Rabushka of Stanford University on the Flat Tax: “Rabushka on the Flat Tax.”

This is cross posted to SlantRight.com which also has a written summary of the audio.

A hat tip is owed to Café Hayek.

Flat Tax is Fair and Balanced

“Taxes:” In the days of the New Testament tax collectors were listed among sinners. History has shown taxation to be a necessary yet unpopular necessity to ensure a stable government performs its services.

In America an Amendment to the Constitution was needed to initiate a permanent Income Tax. The XVI Amendment to the Constitution was ratified by the required amount of States in 1913. Thus began an ever burdensome tax code that was supposed to tax the wealthy and simplify taxation for Middle America and poverty America. This has not happened; indeed the tax code is so confusing that many Middle America are hounded by the IRS for Tax Evasion when the reality is Tax Negligence.

There are criminals that attempt to exploit the tax code; however in most cases these are the nefarious rich and career criminal trying to launder their money and hide it from the IRS. It is the Middle Class that gets hammered by the IRS. The Middle Class unjustly have their Constitutional Rights taken away as the IRS has the ability to seize assets (properties and bank accounts) without warning. If you made the mistake you are charged the actual tax plus penalties in interest. If the IRS made the mistake, you get an apology and you are out the time and money the IRS has cost you.

I sound a little bitter huh?

The Income Tax has evolved into one of the most unfair taxes for rich and poor alike. It is time for a FLAT TAX that assesses American citizens in a fair and balanced way. David Lazarus writes of such a Flat Tax largely constructed by Alvin Rabushka and Robert Hall.