Imagine, governments that live within their means, encourage business and the private sector, and don't head off the cliff to bankruptcy.
States like Virginia and Louisiana show how it is done.
Leaders actually propose real tax reform. Not just larding up the tax code with complexities, and loopholes.
Gov. Bobby Jindal is proposing to eliminate Louisiana income and corporate taxes and pay for those cuts with increased sales taxes, the governors office confirmed Thursday. The governors office has not yet provided the details of the plan."The bottom line is that for too long, Louisiana workers and small businesses have suffered from having a state tax structure that is too complex and that holds back economic prosperity, Jindal said in a statement released by his office. Its time to change that so people can keep more of their own money and foster an environment where businesses want to invest and create good-paying jobs. Jindal said the plan would be revenue-neutral and that the goal would be to keep sales taxes as low and flat as possible.
An interesting development following Virginia Governor Bob McDonnell's proposal to eliminate his state gasoline tax, in concert with increased sales taxes. Proponents of the Fair Tax advocate replacing most federal taxes with a consumption-based national sales tax; these initiatives might be seen as testing the waters for such an idea, or at least providing some interesting data for future discussion.
A sales tax is simple, and very obvious -taxpayers see it all the time, and become very sensitive to increases. Everyone who buys anything pays it. Those who buy more, pay more. And unless the sales tax is packed with a lot of special exemptions which sounds like the opposite of the plan Jindal has in mind is not as manipulative. The government has a harder time using the tax code as an instrument for managing the populace, which really shouldnt be its purpose.
Going on its second term, the Obama Administration's tax reform proposals are non-existent. Obama just wants tax increases, and lards up with special breaks for its corporate cronies. The impossibly-complicated IRS Code is amazingly even worse.