A Modest Proposal (After an Audacious One)

        Ah the flat tax…Perhaps my favorite Warner Bros. short is the one where Foghorn Leghorn’s principal antagonists, the Chicken Hawk and the “Dawg,” lure him into a peep show with “hulee. hulee dancers” whereupon he is pummeled to oblivion.  In this upcoming election cycle, conservative republicans play the role of dawg and hawk with the enticement of a flat tax while working and middle class Americans once again stick their heads into the tent.   As I recall, I don’t have time to check for historical accuracy, Dick Army, right wing sweetheart, introduced a flat tax bill to great fanfare in the 1980s.  Later, 1994, Newt Gingrich promoted the flat tax as a tenet in the “Contract with America” that solidified the conservative hold on contemporary American politics.   Since that time, every election season includes a flat tax proposal from a conservative candidate.  Republicans have held congress 17 of the last 21 years and the flat tax has never even gotten to a vote.   

Contrary to the hope of simpletons, the flat tax will never happen.  Here’s why: Too many people benefit financially under the current tax structure.   Plus, the wealthier you, or your company, are the more you benefit.  Corporate welfare is real and it starts with the income tax.  Given this reality, here is a tax proposal of liberal and libertarian foundation:

Taxes have always been a tool used to manipulate the governed.  This is not limited to American history.  Whether republic, monarchy, autocratic or communist, taxes are levied by the powerful to get specific behaviors from the citizenry.   Sell more houses give a tax break on mortgages, decrease smoking increase the cigarette tax, encourage children by giving a deduction on dependents, etcetera, etcetera… I propose that as a democratic republic we turn this on its head.   First, let’s start with a progressive flat tax that starts at, say, 30% for the wealthiest.   Then, here’s the kicker, develop a list of government services that the taxpayer can select for his or her contributions:  A cafeteria plan as it were.  Add to this a percentage allocation option for the services chosen.   Finally, write into this tax law a privacy stipulation that says that only the individual taxpayer can know what he or she selected. 

Talk about government by the governed.   Due to the wild variety of opinions that exist in this country, I’m not sure our bureaucratic priorities would change that much.  However, wouldn’t it be nice to see representatives and government bureaucratic budgets beholden to the public?   Being the good liberal that I am I would choose education, health care, social security, food stamps, infrastructure, law enforcement and reluctantly, defense (We do need it you know).   There are many who would select other options, but I’m ok with that.

Now I know this idea would never happen so here is plan “B”:  Raise the minimum wage to a living wage for 40 hour employees.  Forget all of the tax manipulation.   Consumption, not the illness, represents about 70% of our economy.  Whenever our economy goes into a slump, no matter how steep, government revenues drop.   This obviously happens because income and spending decrease.  Pay people for their work and you just might see revenue for the things we need.