In this short video from Learn Liberty website, Harvard Economist Jeff Miron explains 3 simple ways to revive the economic recession of USA (whose impact will naturally be global).
1. Cut entitlements: That is, Government should decrease spending on Medicaid, Medicare and Social Security. In other words, cut down on welfare to an extent.
2. Freeze new Governmental regulations on businesses so that businesses can focus more on creating products.
3. Simplify Taxes and go for purchase-tax: The current income-tax based system has grown into a complex system resulting in a huge bureaucracy, proliferation of tax-professionals and needless to say, people have to devote a substantial amount of time to track their taxes and compliance. Miron urges that the current cumbersome system be abolished and replaced by a simple flat tax that everyone pays on consumtion (ie, when I buy an item from market).
By the way, Faitax organization has also been pushing for similar reform.
Here is the video:
1. Cut entitlements: That is, Government should decrease spending on Medicaid, Medicare and Social Security. In other words, cut down on welfare to an extent.
2. Freeze new Governmental regulations on businesses so that businesses can focus more on creating products.
3. Simplify Taxes and go for purchase-tax: The current income-tax based system has grown into a complex system resulting in a huge bureaucracy, proliferation of tax-professionals and needless to say, people have to devote a substantial amount of time to track their taxes and compliance. Miron urges that the current cumbersome system be abolished and replaced by a simple flat tax that everyone pays on consumtion (ie, when I buy an item from market).
By the way, Faitax organization has also been pushing for similar reform.
Here is the video:
I am in agreement of one simple purchase or Transaction tax to replace income tax.
ReplyDeleteHow much could be this Purchase tax?? What advantage it can give in terms of statistical format??
I agree to abolish Income tax completely.." Tax-payers Money" is defeating terms to the society..
I can see the prevention of wastage & unnecessary devaluation of usable products can be avoided.
What happens to the transaction of usable items??or second sale items?? as it is , we are paying purchase tax on every item that we buy..
Excellent.
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