Thursday, April 02, 2009

The GOP Budget Proposal

I have to say that I like a part of the new GOP budget proposal. That is the tiered flat tax.

I've been a proponent of the flat tax forever. It's not fair that the more we make, the higher the rate of taxation. At the same time, it's unfair that these same people can shelter their income off shore and take deductions for their mansions. Remember Leona Helmsley saying that only the poor people pay taxes.

Somewhere along the way, I read that the tax rate would have to be about 17% if we went flat tax across the board. That seems fair to me.

The GOP are suggesting this in an interesting way. There would be a two-tiered taxation rate of 10% under $100K and 25% over $100K. I think it is 0% under $25K (don't hold me to that, though). They say the numbers would be revenue neutral with today's tax structure (with Bush cuts in place). In this scenario, there are no deductions etc.

The hook is that the existing tax structure continues on and you can choose to file the new way or the old way. I suppose it is like filing single or married...folks do whatever benefits them most. Once we get the flatter tax in place, the old tax code can be changed slowly to force more folks to the flat tax.

Republicans and good ideas. Hey, even a blind squirrel finds an acorn once in a while!

BTW, one of the champions of this is Congressman John Campbell. He used to be my rep when I lived in Orange County. He is a multi-millionaire from a chain of car dealerships and he is a rabid social conservative.

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