Anti-Climacus

LINK: Robert Reich makes a good suggestion for the Democrats on taxes: defer payroll taxes now, and pay for in by re-instating the estate tax. I think it's a good proposal, inasfar as it goes. The only thing I don't like is when he starts talking about "the top 2% of all taxpayers"... it's such an abstract concept.

So, herewith, my genius taxation suggestion: get rid of taxes on gas. Get rid of taxes on cigarettes and liquor (the so-called "sin" taxes). Most importantly, get rid of sales taxes. They all directly take money out of the pockets of everyone, money which could be used as further disposable income, or as the basis for building savings accounts, stock portfolios, etc. Replace the income lost by the government by raising income taxes (or creating them, as may be necessitated by removing sales taxes). But rather than raising marginal rates for the top tax bracket, either create a new bracket of only obscenely wealthy people (making more than one million dollars a year-- any old high number will do), or find a way (I haven't gotten one yet) to institute the tax from the top down, rather than from a certain threshold up. You avoid the charge of overtaxing small businessmen and entrepreneurs because you're not directly taxing them first, and you avoid the charge of soaking the rich because you're merely beginning by taxing those who can most easily afford it, and proceeding downward through income levels as necessary (this would require keeping the taxation level, even for the ultra-rich, something reasonable, but that can be done).

All this being said, there's still some connecting of the dots to do. I have no idea what the numbers on all of these things are, so they may be (in whole or part) prohibitively expensive--this, I think, may especially be the case when it comes to sales taxes. But, of course (as those who followed the proposed car tax in Virginia this past election cycle can tell you), these types of taxes are widely loathed, and with good reason. There is a lot to be said for opposing something you're not disposed to like anyway, which can also score you lots of political points. Anyone care to challenge me on my assumptions?