Loading ...Elimination Of Income Tax
Not sure how serious nor how hard Trump will push for this. Opponents will say that a national sales tax will be hard to implement. As much as that may be, getting rid of the unconstitutional, loophole ridden income tax is important on two fronts. Making the tax system fairer and less burdensome on the economy but even more so because it removes the incentive to borrow money(debt).
Currently, every business and wealthy individuals, utilize massive amounts of debt to acquire assets, especially real estate. They then get to write off the interest from their taxes. If you get rid of income tax you remove the incentive to borrow.
When the benefit of a writeoff gets removed, a project or asset has to generate large enough returns to warrant making the investment. Not only does this result in a fairer tax system but it is much better in having capital flow into more productive, beneficial investments.
You think the rich will let this go through? Please.
“If you get rid of income tax you remove the incentive to borrow.”
Eliminate interest expense as a deduction,
and stop taxing interest income.
The main problem is government spending.
As Dave Collum has noted, the Great Depression for Americans ended only in 1946-47, when federal spending was cut by two thirds
https://www.presidency.ucsb.edu/statistics/data/federal-budget-receipts-and-outlays
Of course govt. spending is the main problem. By eliminating the income tax the govt. will need to cut spending because their main source of revenue would disappear. Yes tariffs and a possible sales tax will bring in some revenue but probably not as much as is lost. Both need to be done. Get rid of the income tax and cut spending. My suggestion wasn’t meant as an alternative to cutting spending.
Good insight CM Thanks
Cut govt spending? Now which party is gonna do that? Never gonna happen without the elimination of lobbyists and severe term limits. You think a guy is gonna get reelected without bringing home the pork? The country didn’t have the stomach for it 45 years ago when the debt would have been manageable think they’ll do it now? Nope sorry it will all have to explode first. Too far gone.