On Wed, 1 Aug 2007, Jordan Hayes wrote:
> It's only the other (largely regressive) taxes (oh, sorry: use fees!) in
> the US that diminish the beauty of the (largely progressive) Income Tax.
I think you're right, but I think you're being too cryptic. I think what you mean is that:
- if everything was treated as income and taxed at the same progressive rate (i.e., if there was no separate capital gains tax and no separate FICA);
and
-- if 99% of the deductions were removed (on the principle that it's cheaper and more efficient to purchase social goods directly);
then the income tax would be a thing of beauty: most people wouldn't even have to fill out a form, and it would be as cheap and progressive as all get out.
I agree with you: if we are dreaming of a perfect tax system (which is mostly with this discussion is) yours is a way better dream than VAT.
Michael