Saturday, October 29, 2011

Political Bits: Federal Tax Schemes

The nature of our Federal government's tax collection scheme is the latest hot-button topic for Republican presidential hopefuls Hermain Cain, Rick Perry, and Ron Paul. All three espouse variants on the Fair Tax, a universal and simplified tax code wherein every citizen making or spending money is taxed equally. With all the jiggering with tax rates and whether or not to tax incomes directly or some items but not others and on an on I have to ask: Why should the Federal government tax citizens directly? If our Constitution mandates a Federal Republic composed of sovereign States then why can't the Federal apparatus get its funding by skimming off the top of State tax receipts and Federally-regulated commerce?

Such a revenue program could tax each State at a certain percentage of its income and thereby leave individuals to only deal with State and local taxes. This would transform the problem of certain groups paying very little in taxes into a State issue to be dealt with on a level the common man can have a hope of influencing. The inevitable drop in Federal revenue could be countered by having States deal with their own internal issues using internal resources; in essence this will force State governments to stop being inept and for the National government to become more federal in its dealings.

So am I on to something here or is the idea too far out of left field?

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