Wednesday, February 01, 2006
Ken Arnold Answers Chicago Tribune Question 3 - Budget
B) Have greater efficiencies in both the collection and disbursement of tax revenues by the original idea Ken Arnold has of a combined “National Sales Tax/Simplified Income Tax” initiative. This would marry the best of each concept. The proposal would have the States collect a National Sales tax, deduct all Federal mandated programs, and finally only remit to Washington the NET proceeds thereafter. What a marvelous exercise of Federalism and a rebalancing of States rights!
On the Income Tax side, there would be a greatly lowered and simplified progressive income tax system that would continue to address the fairness issue of those previously setting aside monies in tax-deferred vehicles such as 401Ks and IRAs.
This last area of tax deferred investment vehicles is a SERIOUS problem with the 100% “Fair Tax” people (including all of my Republican opponents). Out of understandable ignorance, they do not realize (not being a benefit plan professional) that there is a need to address these type programs in any tax structure change. You can’t simply and suddenly say there will be no tax ever collected on these programs – it would be grossly unfair to many Americans to have such tables so drastically turned on them! Keeping a component of all Federal taxes as INCOME tax addresses this area effectively and fairly.
Today, the Tax Foundation estimates it costs 20 cents in compliance costs for every dollar collected by the IRS. Initiating the above innovations will not only much more efficiently collect needed revenues (for BOTH taxpayers and Government), but will spur savings and investment which will grow our economy and thereby grow the tax base on both the sales tax and income tax sides of the equation. Interestingly, Ken’s proposal will also help our balance of payments with foreign trade since foreign made goods will have the National Sales Tax applied to them in America while American goods shipped overseas would not. And the ingrained taxation via income and corporate taxes within such shipped American goods would be lower since the progressive income tax (including that on corporations) would be greatly lowered and simplified.
C) Standardizing all federal health and welfare plans in benefit eligibilities and operations would materially save money, increase accurate administration, and give citizens a greater sense of security knowing when they are eligible for assistance within our “social safety net”. Ken Arnold would propose having a national debate in Congress as to what our country feels is a poor person in need of assistance. And when such levels are determined, then standardizing all home heat, food stamp, and welfare programs to meet these markets. After all: A poor person…is a poor person…is a poor person. Today it is a dizzying array of conflicting structures and eligibilities based much more on history than logic. Ken Arnold would change all that. With all the “trees” that have grown up over the decades – we now have a dire need to clear the forest!
D) Lastly, by Ken Arnold reforming both our national healthcare system AND retirement income plan systems (including social security), great savings will be had. A telling fact, for instance, is that Medicaid is one of the fastest growing components of the Federal government. And it is because it taps into our broken healthcare system experiencing great cost inflation that this is so. Fix the system – and you fix the costs.
To return to McHenry County Blog, click here.
On the Income Tax side, there would be a greatly lowered and simplified progressive income tax system that would continue to address the fairness issue of those previously setting aside monies in tax-deferred vehicles such as 401Ks and IRAs.
This last area of tax deferred investment vehicles is a SERIOUS problem with the 100% “Fair Tax” people (including all of my Republican opponents). Out of understandable ignorance, they do not realize (not being a benefit plan professional) that there is a need to address these type programs in any tax structure change. You can’t simply and suddenly say there will be no tax ever collected on these programs – it would be grossly unfair to many Americans to have such tables so drastically turned on them! Keeping a component of all Federal taxes as INCOME tax addresses this area effectively and fairly.
Today, the Tax Foundation estimates it costs 20 cents in compliance costs for every dollar collected by the IRS. Initiating the above innovations will not only much more efficiently collect needed revenues (for BOTH taxpayers and Government), but will spur savings and investment which will grow our economy and thereby grow the tax base on both the sales tax and income tax sides of the equation. Interestingly, Ken’s proposal will also help our balance of payments with foreign trade since foreign made goods will have the National Sales Tax applied to them in America while American goods shipped overseas would not. And the ingrained taxation via income and corporate taxes within such shipped American goods would be lower since the progressive income tax (including that on corporations) would be greatly lowered and simplified.
C) Standardizing all federal health and welfare plans in benefit eligibilities and operations would materially save money, increase accurate administration, and give citizens a greater sense of security knowing when they are eligible for assistance within our “social safety net”. Ken Arnold would propose having a national debate in Congress as to what our country feels is a poor person in need of assistance. And when such levels are determined, then standardizing all home heat, food stamp, and welfare programs to meet these markets. After all: A poor person…is a poor person…is a poor person. Today it is a dizzying array of conflicting structures and eligibilities based much more on history than logic. Ken Arnold would change all that. With all the “trees” that have grown up over the decades – we now have a dire need to clear the forest!
D) Lastly, by Ken Arnold reforming both our national healthcare system AND retirement income plan systems (including social security), great savings will be had. A telling fact, for instance, is that Medicaid is one of the fastest growing components of the Federal government. And it is because it taps into our broken healthcare system experiencing great cost inflation that this is so. Fix the system – and you fix the costs.
To return to McHenry County Blog, click here.
# posted by Cal Skinner : 4:10 AM
