Political Book Summaries, Reviews and Opinions

Political Book Summaries, Reviews and Opinions

Why the flat tax would be better

The threshold for taxing family health plans will be raised from $23,000 to $24,000, and dental and vision benefits won’t be counted toward that amount after 2014, AFL-CIO President Richard Trumka told reporters. Health plans covered by union contracts would not be subject to the tax until 2018, and the threshold for taxing other plans will be adjusted by 1 percent above the annual rate of inflation, he said.

Union leaders don’t like the idea of the so-called Cadillac tax. That tax will tax extra high employer provided health care benefits. The Senate wants it to pay for the reform. Obama wants it because (again, I’m a bit surprised) he understands supply side economics and doesn’t want those high end health care plans to lift everyone’s healthcare costs. Union leaders don’t want it because lots of employees have traded higher wages for better benefits, thus House Democrats don’t want it because they want to keep friendly with their donors and activists.

What’s not said is that the root of the problem is that the Government created this problem by making all healthcare plan un-taxable. It seems like a nice idea, don’t tax good things, let people have cheaper healthcare. But government intervention always has unforeseen side affects. By not taxing healthcare, the entire systems moves to play in those rules and Unions for more un-taxable benefits for their people. This results in expensive healthcare plans that drive the cost of healthcare for everyone (at least according to the Administration). What would be better is taxing everything the same, get the government out of deciding what people should buy and how much of it.

What is completely ignored, is that the whole thing is a disgusting display of Federal power run amok. Read some of that stuff.

The changes will reduce the $150 billion expected to be raised over 10 years by about $60 billion, he said.

How does that happen? It happens because Unions are an important base of the Democratic party. It happens because the Democrats need Union money to get elected. Now, I’m not accusing corruption and bribery, but the system itself is corrupt. Each party needs money to get elected, they each have their donor bases, and once in power, they need to take care of their donors. It’s that simple. The Republicans have to take care of Halliburton, the Democrats take care of the Unions. The system is the problem.
Here’s some more tax discussion:

“…5.4 percent income tax surcharge on incomes higher than $500,000 for individuals or $1 million for couples.”

How are those numbers decided?

By the winners of the election taxing the losers. That’s what our Democracy has broken down to. The winners get to decide how to tax the losers. The results? About Our tax code has at least 67,506 pages. Here’s a PDF to scare you a bit.

This is what happens when you let politicians play with the tax code, instead of raising taxes, they use the tax code to punish those they don’t like and reward those they do. Seven decades of political maneuvering have resulted in a tax code that benefits only those with power (in this case, the Unions).

We need a flat tax. Be it the fair tax, or Ron Paul’s 1% tax. Or the Laffer Flat tax. Whatever method we choose, we need something that Politicians, be they Democrat or Republican can’t manipulate our taxes for their political goals.
From CNN: Union leaders: Deal reached on taxing ‘Cadillac’ health care

2 responses to “Why the flat tax would be better

  1. writerdood January 15, 2010 at 10:41 am

    Yes, would be great.
    Nope, it won’t happen.
    The powers that be need their loopholes and complexity.
    We can’t have transparency now, can we?

    • The BookGuy January 17, 2010 at 10:00 pm

      Well, in fairness to Obama, his Administration is as transparent as or more transparent than any administration in my life time. That’s part of the problem, the fact that we can see how the healthcare bill has been written is part of the reason people don’t like it. I remember a lawyer once joking that the two things in life you should never see made was ground beef and laws. Well, the Democratic “transparency” thing has given us all a good look, and we don’t like it.

      With all that said, no, you’re probably right. No party in power will ever want to give up the power to tax. 😦

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