What is the best way to tax people?. Here is the thing. I do not think we are EVER going to all agree with how we should be taxed, who should be taxed, and at wht rate. I do believe there is a way for each individual, family, and busniess to “put their money where there mouth is”. This is how I suggest we do it. We keep the tax codes exactly how they are right now. Then we sell this idea: Doing your tax return in the same way you have been doing it results in the minimum that you must pay. Let’s say that some people think not enough money is going towards social security: those people could choose to take less of a deduction and pay taxes at a higher rate. They could specify exactly how they want those funds to be spent (lets’s say towards social security, or paying down the national debt). By law those increased voluntary payments MUST be spent as specified.
Let’s say a corporation (say Standard Oil) and its Board of Directors want the national debt to get paid off. They could contribute extra $ towards that or towards Environment Protection or whatever. Gosh they could even make commercials about it “We voluntarily contributed 1 million $ to the EPA” for instance.
Getting all of this implemented could possibly all be handled through PayPal even. Movie stars could stop griping about corporations and millionaires and lead the way and voluntarily take no deductions at all (not even personal exemptions) on the basis that poor people don’t do Schedule A for instance.
You see, that way each person could contribute towards whatever cause in the government they are willing to pay extra in order to fund: it could be aid to foreign countries, medicare, space program, the enironment, education, defense, housing….you name it. Congress would not be allowed to interfere with the funds.
Ultimately perhaps each person could determine what programs they want all their taxes to go to…But in the meantime this could be implemented. What does everyone think about that?