Why Government Doesn't Work: on Tax Reform


10% flat tax OK, if no income tax returns

The proposed flat tax is big and flat, because there’s no reduction in the size of the federal government. They say you’ll be able to file your tax return on a postcard. But there’s nothing to stop the IRS from demanding proof that the number you put on the postcard is correct.
A better arrangement-one that honors freedom & privacy-is a flat 10% tax on all income. No deductions, no exemptions. The 10% would be withheld from your paycheck and forwarded to the government by your employer-without your name attached.
You would not have to file a tax return because you’ve already paid your tax. The same would be true of all dividends and interest you earn; the company paying you would withhold 10% and forward it to the government.
The estate, gift, Social Security, and capital gains taxes would also be abolished. The government wouldn’t know how much you make, where you keep it, or what you do with it. Your financial life would be private, as it should be in a free country.
Source: Why Government Doesn’t Work, by Harry Browne, p.182 Jul 2, 1995

5% sales tax OK, if income tax is eliminated

A possibility is to eliminate the income tax entirely, and put a 5% retail sales tax in its place. To prevent it from becoming a political football, there should be no exemptions-not for food, medicine, or anything else.
Most likely, the repeal of the personal and corporate income taxes would reduce prices enough that, even with a 5% sales tax, most things would cost less than they do today. But even if prices didn’t fall, the 5% tax would be much less oppressive than the current income tax.
The estate, gift, Social Security, and capital gains taxes would also be abolished. You would never again have to file a tax return, never have to fear the IRS, never have the government going through your records.
The federal government should reimburse every retailer for being a tax collector-by taking only 95% of whatever the retailer collects. The rest should be a fee to the retailer. The tax would produce about $250 billion-which can amortize the national debt and get rid of it.
Source: Why Government Doesn’t Work, by Harry Browne, p.183 Jul 2, 1995

  • The above quotations are from Why Government Doesn't Work: How Reducing Government Will Bring Us Safer Cities Better Schools, by Harry Browne.
  • Click here for definitions & background information on Tax Reform.
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  • Click here for more quotes by Harry Browne on Tax Reform.
2016 Presidential contenders on Tax Reform:
  Republicans:
Gov.Jeb Bush(FL)
Dr.Ben Carson(MD)
Gov.Chris Christie(NJ)
Sen.Ted Cruz(TX)
Carly Fiorina(CA)
Gov.Jim Gilmore(VA)
Sen.Lindsey Graham(SC)
Gov.Mike Huckabee(AR)
Gov.Bobby Jindal(LA)
Gov.John Kasich(OH)
Gov.Sarah Palin(AK)
Gov.George Pataki(NY)
Sen.Rand Paul(KY)
Gov.Rick Perry(TX)
Sen.Rob Portman(OH)
Sen.Marco Rubio(FL)
Sen.Rick Santorum(PA)
Donald Trump(NY)
Gov.Scott Walker(WI) 		Democrats:
Gov.Lincoln Chafee(RI)
Secy.Hillary Clinton(NY)
V.P.Joe Biden(DE)
Gov.Martin O`Malley(MD)
Sen.Bernie Sanders(VT)
Sen.Elizabeth Warren(MA)
Sen.Jim Webb(VA)

2016 Third Party Candidates:
Gov.Gary Johnson(L-NM)
Roseanne Barr(PF-HI)
Robert Steele(L-NY)
Dr.Jill Stein(G,MA)
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Page last updated: Feb 26, 2019