Tax The Rich!

Wanna know one way to truly tax "the Rich?"

Replace the Income Tax with an Outgo Tax.

Instead of platoons of bureaucrats tracking down what people earn, (or steal, and the rich fat cats evade anyway - hell, their "elected" minions wrote the loopholes) simply tax what they SPEND. Don't call it a sales tax, though, because of the negative connotations. Call it a Purchase Tax. Of course, grocery store food, medical supplies, and pre-owned items would have to be exempt. If you cook your own food and aren't too proud to buy clothes at the Thrift Shop, you'd pay zero tax!!!!

Bonus! It would let us fire the big, bad IRS!

Talk about nailing "The Rich!!!" They'd pay 10% (or 15, or 20, or whatever is needed to pay for the entitlements and pay down the current deficit) of all of their purchases, including greens fees, hotel bills, limos, plane tickets, Carnival Cruises, multi-million dollar yachts, mansions, hundred-thousand dollar diamond necklaces and Lamborghinis for the princess's birthday...

After all, isn't it their lavish, opulent, decadent lifestyle that's pissing us off?

Tax restaurant food, but not tips - that'd be an income tax on the server. The server will pay her taxes when she goes and buys a new designer purse.

But DO tax Value Added[1] on all Wall St. transactions.

Let me repeat that:

Tax Value Added[1] on all Wall St. transactions at the same retail rate as cited above.

A bonus might be that doing so would slow down the rampant speculation as well. The way I see it, it's perfect!

The rate might have to start a little higher at first, until we get Commissar Obama's astronomical deficit under control, but if we could also get rid of the armies of unelected bureaucrats, that would help a lot.

The politicians, bureaucrats, czars, union bosses, prostitutes, drug dealers, gamblers, con artists, petty thieves, and other criminals would pay their tax when they spend their ill- gotten gains.

And nobody would be able to evade it, because it would simply be collected at the Point of Sale.


We might have to have some discussion about how to treat used houses and used cars, but isn't "discussion" what government is supposed to be about? Maybe only on the Value Added[1].

[1] What's "Value Added?"
A wise and trusted colleague of mine pointed out that a full tax on the full value of each and every stock transaction borders on cruel and unusual punishment. There are an awful lot of stock transactions every day!

IPOs not so much, so they're still fair game.

So if I buy, say, 1,000 shares of International Widget at its IPO, clearly, that's a new product. Say it's $1.00/share, that's $1,000.00 in sales, and my outgo tax would be $100.00. Now, assume they're a hit, and I find my shares worth, say, $2.00. I decide to cash out, so I sell my 1,000 shares to Joe Schmo for $2,000.00. It's not really fair that Joe should have to pay the full tax on the $2,000.00 price, since I've already paid the tax on the initial $1,000.00. The "Value Added" would amount to the difference between its price today, $2,000.00, and the $1,000.00 that I initially paid, or $1000.00. So Joe should only have to pay $100.00 tax on the "Value Added" That is, the "Value Added" would be the difference between the price today and its price the last time it was traded.
Copyright © MMXI Richard M. Grise. Permission is hereby granted to copy and redistribute this document freely and as prolifically as possible, as long as the original text is not altered in any way.