Plenty of lawmakers are against tax breaks and so-called loopholes. Unless, of course, they personally helped create them.
The Senate Republican leader, Mitch McConnell, for instance, says he is open to ending tax breaks for special interests. But when it comes to a tax break he secured in 2008 for the owners of thoroughbred racehorses, he argues that the measure is essential for the protection of jobs in his home state of Kentucky.
Senator John Kerry, Democrat of Massachusetts, says he too wants to eliminate such breaks, except when it comes to beer. He is one of the main supporters of a proposal that would cut taxes for small beer makers like the Samuel Adams Brewery in Boston.
Don’t tax you, don’t tax me, tax that fellow behind the tree!
So so typical of Washington DC hypocrisy.
Which is why Herman Cain’s 9-9-9 plan is an interesting proposal to contemplate: 9% personal income tax, 9% corporate tax, and 9% national sales tax. Puts everyone into the game, no tax loopholes, no special preferences. Probably why it will never ever see the light of day even if Cain were to become President.
The only problem with the 9-9-9 plan is that I am wary of instituting another national tax (sales tax). These things, once hatched, never die and tend to grow. I prefer a flat income tax with no special deals and low rates. The low rates would stimulate growth and the outlawing of special deals would go a long way towards outlawing the corruption.
Agreed. I could go with either plan. The problem is getting support, enough popular support so that Congress would have to enact such a new plan.
One idea is to eliminate withholding. Send in a monthly or quarterly check for taxes due like we did before WWII. Let people see and feel the pain of sending all that money off to Uncle Sam rather than having it taken off the top, virtually unseen and unfelt.
In the current system only small business folks, contract workers, people on incentive pay have the pleasure of sending ~50% of what they earn for Fed Income, FICA, and State tax withholding.