2012-11-30

My Big Tax Reform Idea

I have a brilliant tax reform idea that will cut through the political gridlock and solve our fiscal woes without placing an unfair tax burden on anyone, and without the need for a particularly convoluted change to the existing tax rate structure. It is a simple plan, easy to implement, and satisfies absolutely everyone across the political spectrum.

Here's how it works:
  1. Step One - Freeze the Existing Tax Rates: The first step we need to take is to make the current tax rates "the status quo." Make the Bush cuts permanent and henceforth refer to the current rates as "what the tax rates are," so that we all stop talking about our own private historical period that featured our own preferred rate. Regardless of what we all prefer, let's just start the discussion from what we currently have and stop referring to the past.
  2. Step Two - Let All Those Who Think Taxes Should Be Raised Opt-Into Higher Rates: Simply stated, if you think tax rates are too low, you may opt-into a new tax rate structure consistent with the Obama Administration's preferred tax regime. So Warren Buffett can start paying his higher rates, as can any other rich person who insists that they can afford higher taxes. Also, any middle- and lower-class Obama supporter who feels strongly about raising taxes to afford increased welfare spending can certainly also opt-into the new rates. As a matter of practicality, their Social Security Numbers can be appended with an addtional 3-digit suffix so that people who opt-in can be properly accounted for at the Internal Revenue Service.
  3. Step Three - Let All Those Who Oppose Higher Taxes Abstain From Opting-In: If, on the other hand, you don't want to pay higher tax rates, you don't have to. You can keep paying the same status quo rate, as per usual. Your overall tax burden is unaffectted.
No more arguing, no more politics, no more B.S. Those who want to pay more, pay more. Those who don't, don't. I assume this means that the majority of Democratic politicians will opt-into the higher rates, and the majority of Republicans will not. Furthermore, I imagine that the majority of Democrats and liberals across America will opt-in, and the majority of Republicans will not.

Democrats and liberals get to have their social welfare morality play, and Republicans and conservatives get to have their economic welfare morality play, and the general public gets to play choose-your-own-tax-regime. Everybody wins.

Who's with me?