I’ve been arguing for years for the replacement of income tax by a purchase (sales) tax. There are many reasons why this is desirable but among them is the fact that income tax penalises production.
Of course, my proposal is but part of a package that includes the abolition of the completely stupid debt-based money system with as sensible system in which governments create real money and spend it into the economy debt-free.
It is interesting, though, what the US State of Tennessee has achieved just by abolishing income tax and replacing with with a sales tax, as the article below describes.
It is as fantastically liberating measure all on its own and the Tennessee administration should be congratulated for it.
You want to boom the economy, post-Brexit? Well, a good start would be to do what Tennessee has done.
The wonder of all this though is there is a lot MORE that could be done to help all the nation ‘s productive and industrious citizens.
There is no excuse for a nation to slide into poverty, for rising unemployment, escalating debt and so forth. These phenomena are CREATED and they are created by unethical or unintelligent governments levying the most counter-productive tax imaginable – the income tax.
And letting the banks milk the economy by creating its means of exchange as an interest-bearing loan of course.
The truth of the matter, albeit we are surrounded by enforced mediocrity, is the potential for our civilisation to flourish and prosper is almost beyond imagining. All we need to do is remove from our road the policies of the knob-heads who are working hard to prevent it.
There are two things our politicians can learn from this:
- The abolition of income tax is both do-able and beneficial.
- And imagine what a vote-winner would be a sincere promise to abolish the most onerous tax ever devised by the criminal mind.
$800 Million Payoff Thanks To Tennessee Tax Structure
Last week, officials revealed the very good news that Tennessee brought in nearly $800 million more than budget estimates of tax collections during the first ten months of the fiscal year. Finance Commissioner Larry Martin lauded the unpredicted overage and, importantly, stated that the large totals owed primarily to sales-tax revenue.
For free-market economists, large corporations, and small businesses alike, sales taxes have long been the most desirable and stable form of taxation. Rather than putting a price on work – as with the most volatile and mobile of levies, income tax – sales tax is applied evenly and allows for a steady stream of tax revenue.
In Tennessee, the numbers tell the story. Sales tax collections are the government’s main source of revenue, and in fact totaled $33.5 million more than estimates for the month of May 2016 and 6.49 percent higher than in May 2015. For that ten-month period that the Tennessee Finance Department analyzed, sales taxes were totaling $345 million higher than estimates, and the year-to-date growth rate was a notable 7.81 percent. Even more notable: Tennessee achieves these impressive results without levying an individual income tax on its residents.
While the news from this fiscal year is more than encouraging, Tennessee’s economic ascent has been quite a few years in the making. According to individual taxpayer records from the Internal Revenue Service, between 1992 and 2014 Tennessee gained $12.36 billion in net adjusted gross income (AGI). Perhaps not surprisingly, the bulk of that wealth-migration came from states that discourage growth and innovation via prohibitively high income-tax rates; the two main income-contributors are California (which sent $1.43 billion to the Volunteer State in that 22-year span) and Illinois (which sent $1.36 billion).
The lead author of the Boyd Center, Matt Murray, said in a recent interview, “The state economy has seen remarkable improvement in the last several quarters. April’s drop in the unemployment rate was exceptionally good news.”
The nation’s leading credit-rating agencies are responding to that “exceptionally good news.” Standard & Poor’s raised Tennessee’s rating to “AAA,” citing a stronger economy and higher reserves. In its analysis, S&P noted that the “outlook reflects our view of the state’s strong management of its long-term liabilities.”
Once again, a state like Tennessee should serve as a lesson for the rest of the nation. Place a huge price on work, and you’ll see the type of loss and decline that plagues states like California and Illinois. Focus your tax revenue on predictable sources, such as sales tax, and see unprecedented growth that catches the attention of legislators, innovators, and rating agencies alike.
The above article is from Forbes.con. Visit Forbes for more great articles
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