Sunday New York Times: Making Taxation Fairer
Income tax in modern form came into being only in 1913 through the 16th Amendment. For most of the first 137 years of our Republic, we had no income tax at all. We need to return to our roots.
The concept of an income tax is flawed both in practice and theory. Taxing consumption rather than income allows the unfettered accumulation of wealth, encouraging production; you pay taxes only when you spend. The economy and the environment both benefit by taxing that which really has societal costs.
This is both progressive and regressive: progressive because our tax burden is proportional to ability and willingness to pay. Regressive because the poor will pay a greater percentage of their total income on consumption tax.
The regressivity can be partly offset with savings from dismantling the Internal Revenue Service (about $13 billion) and through measures like exempting food and social necessities.
Taxing income makes little sense. Time to call this a failed experiment.
JEFF SCHWEITZER
Spicewood, Tex., May 9, 2012
