A Word on Taxes My Personal Opinion

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

Introducing a national sales tax to replace the current income tax and tax on capital gains can have various 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 result in cost savings for both taxpayers and the government. However, the regressive effect of higher sales taxes on lower-income individuals could impact economic growth. There may also be international implications, as a higher sales tax compared to 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 then sales tax which the poor pay on purchases anyway. It might be a better argument to point out what is taxed. The poor pay a greater percentage of each paycheck on rent and nessesities, reducing the amount of 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 more fair and equitable to charge a 5% flat tax with no deductions or exceptions on all income. But it seems still unproductive to have a federal tax on individual income when each state could take responsibility for their own economy, collect the flat tax and contribute to the federal governments 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 collections. Each state should be responsible for 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 to all citizens equally. Economic structures change continually and the only way to keep the social structure stable is being able to support the change as the needs of development 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 in thanks to their labor our future is built. Only a Sales Tax can meet these needs and changes: flexibly, 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 based on percentages not on actual spending. Changing the method of taxation could also benefit the poor by providing a greater tax base to support government funding of better education, job creation and encourage savings. Those who have 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 basic needs are barely met and most of my time is spent on meeting those needs. Education is a much harder option as I near retirement and face an income a fraction of 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 poses obstacles to economic growth, discouraging investment and hindering 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 result in cost savings, 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.