By JLP | January 4, 2012
I read this article last night and thought I would share this paragraph:
In general, this newspaper’s instincts lie with small government and against ever higher taxation to pay for an unsustainable welfare state. We reject the notion, implicit in much of today’s debate, that higher tax rates on the wealthy are justified because of the finance industry’s role in the crunch: retribution is a poor rationale for taxation. Nor is the current pattern of contribution to the public purse obviously “unfair”: the richest 1% of Americans pay more than a quarter of all federal taxes (and fully 40% of income taxes), while taking less than 20% of pre-tax income. And knee-jerk rich-bashing, like Labour’s tax hike, seldom makes for good policy. High marginal tax rates discourage entrepreneurship, and no matter how much Mr Obama mentions “millionaires and billionaires”, higher taxes on them alone cannot close America’s deficit.
The article did state that the rich should pay more but that the tax structure should be simplified and deductions taken away. They didn’t endorse a flat tax, which is disappointing.
Related, this opinion piece in this morning’s WSJ was disappointing. I hate the idea of a VAT. That’s all we need is another way for politicians to tax us.