The really wealthy in this country pay no income tax. The Democrats like to point that out, even though many of them fall into this category. What they don’t tell you is–why. The really wealthy have little or no income. They live off savings and trust funds and perqs (like our senators and congressmen) and have no need for income.
But they do spend. And they spend big. Let’s use the favorite adjective of “antis” everywhere to describe them: BIG SPENDERS. Kinda goes along with Big Oil, Big Tobacco, and Big Personal Injury Lawyers.
Just an example that’s been floating around recently–John Kerry’s $8000 bike. And let me clear, this isn’t a slam at Kerry, but of everyone like him. Is a 10% sales tax to replace the income tax a good idea? His bike would then cost him $8800. I think he could afford it. “But sales tax hurts those who don’t have much money.” Only if they buy things. Right now, they pay no income taxes at all. If we restrict a sales tax to limit its application so that things like food and medicine aren’t taxed, there is no suffering involved. It puts you in charge of how much you pay in federal taxes.
Our Curmudgeon has an interesting piece on Hastert’s proposal and its repercussions. Democrats won’t like it even though it taxes the rich in proportion to their spending habits, or maybe because it does so. They also won’t like it because the people they count on to remain in office will end up having to contribute something to “provide for the common defense and promote the general welfare.”
This country operated for more than a century without an income tax. When created, it was supposed to be a temporary measure. Nothing in the Federal Government is temporary.
***UPDATE***
Neal Boortz has more.