This will never fly

Coyote Blog’s tax proposal, which will of course go nowhere:

1. Eliminate all deductions in the individual income tax code.

2. Eliminate the corporate income tax.

3. Tax capital gains and dividends as regular income.

4. Eliminate the death tax as well as the write-up of asset values at death.

There is also a 4a: until the program is properly restructured, the Medicare tax will have to rise a bit.

Some exposition on 3:

I know there is all sorts of literature that supposedly promotes a lower capital gains tax as an economic positive. Frankly, I don’t trust it any more than any other literature genned up to promote special tax breaks to any group because that group is supposedly economically more important. In my mind, a lower capital gains tax rate (which means a higher regular income tax rate) is just another way of government expressing an artificial preference for one economic activity over another.

In anything resembling a free society, we shouldn’t have to give two-thirds of a damn what the government claims to “prefer.” Not that they care to remember such minor details, but they’re supposed to be working for us, not the other way around. Washington, D.C. should look as barren as pre-Bakken North Dakota is supposed to have been.







3 comments

  1. McGehee »

    3 January 2013 · 6:37 pm

    In anything resembling a free society

    There would be no 16th Amendment and the very idea of an income, capital gains or estate tax at the federal level would be a dead letter.

  2. Tatyana »

    4 January 2013 · 11:04 am

    Hear, hear

  3. Charles Pergiel »

    5 January 2013 · 2:23 am

    Your Bakken link has one too many http’s.

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