A Word on Taxes My Personal Opinion

My opinion on taxes has changed over time and continues to change as I learn more and through my own personal experiences. I like hearing different opinions and perspectives, but I believe we should welcome change and try things out in small steps before dismissing an idea based on rhetoric and assumptions. That said, here is what I think so far.

Introducing a national sales tax to replace the current income tax and capital gains tax can have several implications. Firstly, it could increase revenue by capturing revenue from a broader range of economic activities. The simplicity and efficiency of a sales tax may streamline the tax system and save costs for both taxpayers and the government. However, the regressive effect of higher sales taxes on lower-income individuals could impact economic growth. It may also have international implications, as a higher sales tax than in neighboring countries could affect cross-border consumer spending. Implementing a new tax system requires political consensus and public acceptance, along with careful analysis and stakeholder engagement. The outcomes and impacts of a national sales tax depend on its specific design, including tax rates, exemptions, and distributional considerations.

In all fairness, income tax is much more regressive than sales tax, which the poor pay on purchases anyway. It might be a better argument to point out what is taxed. The poor spend a greater percentage of each paycheck on rent and necessities, reducing their disposable income. The wealthiest pay taxes less often and have many more loopholes and tax breaks. Some corporations can claim a loss or write off enough expenses to reduce their tax liability to zero. It would be much fairer and more equitable to charge a 5% flat tax on all income, with no deductions or exceptions. But it still seems unproductive to have a federal tax on individual income when each state could take responsibility for its own economy, collect the flat tax, and contribute to the federal government as members of the Union (perhaps a standard flat 10% of collected revenue from each state). Yet again, this may pose the same problem as centralized control of the economy, unless pay for political positions is capped, term limits are enforced, and any increase must be approved by the Executive and Judicial branches of government. 

Sales tax should also be a state issue for collection. Each state should manage food programs, supply and demand, and distribution. Sales tax, and not property tax, should fund school systems and infrastructure development within the state. Education and resources should be available equally to all citizens. Economic structures change continually, and the only way to keep the social structure stable is to support change as development needs change. As new technologies emerge, job skills change. Some can learn these new skills, but others are displaced and should be supported by programs that recognize that, through their labor, they build our future. Only a Sales Tax can meet these needs and changes: flexible, adjustable, and scalable.  

The argument that sales tax is regressive is based on the fact that the poor spend more of their income. This is true in percentages, not in actual spending. Changing the method of taxation could also benefit the poor by broadening the tax base and supporting government funding for better education, job creation, and savings. Those with more money spend more on things they want, far beyond their needs. Personally, my rent is at least half my full-time income. It feels like forced labor when I barely meet basic needs and spend most of my time doing so. Education is a much harder option as I near retirement and face an income that is a fraction of what I earned during my working years. 

In conclusion, cryptocurrency and decentralized finance have the potential to address income inequality and promote financial inclusivity by democratizing financial services and challenging the centralization of power in the current economic system. The current regulations in the US financial industry can have unintended negative impacts on social development, hindering innovation and economic inclusion. The complex tax system also hinders economic growth by discouraging investment and burdening small businesses. However, regulated cryptocurrency and blockchain technology can streamline the tax system, improve transparency, and reduce tax evasion. Introducing a national sales tax may simplify the tax system and reduce costs, but careful consideration of its design and potential impact on lower-income individuals is necessary. Overall, striking a balance between necessary regulations, tax policies, and promoting social development is crucial to ensure economic inclusion and progress.