My view  I favor simplification of our methods of taxation, tying any tax to the use or benefit, and first cutting costs before trying to create new revenue.   I would slowly phase to a system of taxation based on consumption, not production.  In the process, I would eliminate a buhzillion pages of arcane tax law.  I am short a few hundred hours of time needed to create such a plan but would love to have your input on how to do it.

Mr. McCain’s Plan – He has proposed a tax plan that changes nothing structural about our system of taxation and little about the rates a purpose.  His plan, if enacted, would cut federal Income taxes on all americans.  It is a plan slanted toward encouraging business and investment by high wealth individuals and companies.  He is against Windfall profit tax on Oil Companies.  His base view is that we need fewer taxes on individuals and companies.  He views taxation as a means to an economic end, what I call Market Engineering through tax policy.  It would help if he also had a plan to show significant cuts in government spending.   History – Mr. McCain has been fairly consistent in his votes to cut taxes or continue tax cuts.  In 2003 and 4, he commented often that he was against the Bush Tax cuts because they benefited the wealthy.  It appears that is behind him based on current statements.  

Grade – C  he has about half of the equation right, lowering taxes but needs to lead with cost cutting first.

Mr. Obama’s Plan –  He has proposed a tax plan that changes nothing structural about our system of taxation but which changes rates and the purpose of the taxes.  His plan, if enacted, would cut federal Income taxes on most Americans, raising them significantly on the wealthiest.  It is a plan slanted toward taking from high wealth individuals and companies and redistributing to the inner city poor. He is in favor of a Windfall profit tax on Oil Companies.  His base view (inspite of the populist notion of tax cuts for most Americans) is that we need more taxes to pay for more programs.  He views taxation as a means to a social end, what I consider Social Engineering through tax policy.  He, too, has offered no plan to show significant cuts in government spending.   History – Mr. Obama has been very consistent in his votes against tax cuts and his desire to redistribute from the wealthy to the poor.  He has proposed a Windfall Profits Tax on Oil Companies.  His entire adult life he has worked to get government funding for programs for the inner city poor.  He has voted consistently to raise taxes on some while not on others.

Grade – D   His policies are, in my view, socialist – He wants to create a system whereby those who produce will be penalized and asked to pay for ever increasing programs for the poor -pure and simple, “From those according to their abilities; to those according to their needs.”  Maybe since Marx said that, I should have said Marxist, not Socialist.  He offers more programs, not restraints on spending.

 

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