- Chad D
- Plano, TX
- United States
New tax system that would help solve health care, entitlement programs, poverty, and business in general.
I believe a new form of taxation and rebates can help solve many of the short-term and long-term problems that America faces. The solution comes naturally from shifting our current system to a more ethical one. Right now, taxes are taken from some individuals and given to others. What if taxes were taken from all, then given to all in equal proportions? The collection of taxes would build off of the concept of the Fair Tax, where a consumption tax is placed on new, retail items. Since the income tax, payroll tax and other taxes would be eliminated and not contribute to the price of goods, retail prices would stay the same with the consumption tax. Finally, the Fair Tax provides rebates at the beginning of each month, called prebates, to every American citizen in order to offset the monthly total taxed on the basic necessities of life.
The addition, I propose small, incremental increases in sales tax over time, in order to essentially balance-out the tax revenues given to opposing segments of society. For example, just over half of our federal budget goes toward Medicare, Medicaid and Social Security. Totaling the cost for each of these programs then dividing by the number of citizens on each results in people on them receiving per month about $870, $465 and $1,070. If the total cost of each program were to be matched and then divided among citizens NOT on the programs, people would receive $220, $136 and $368 monthly. This would create a balance between segments of society. To stave off inflation, these prebates could be implemented slowly over several years. This effectively puts a check on entitlement programs (the higher the cost, the more that people who aren’t on them receive, plus the higher prices become for everyone, discouraging run-away growth), it provides choice for government provided health care (if you don’t want on it, you get a prebate), and it puts immediate consequences on everyone, rather than passing the buck to the next generation.