Saturday, December 18, 2004

Weighing my options

Mark Alexander writes an analysis comparing two proposals to revamp the current OOC tax code. Here are some excellent quotations he includes:

Of the "General Welfare," Benjamin Franklin observed:

"I am for doing good to the poor, but...I think the best way of doing good to the poor, is not making them easy in poverty, but leading or driving them out of it. I observed...that the more public provisions were made for the poor, the less they provided for themselves, and of course became poorer. And, on the contrary, the less was done for them, the more they did for themselves, and became richer."

As for the effect of excessive taxation on the economy, Alexander Hamilton wrote:

"If duties are too high, they lessen the consumption; the collection is eluded; and the product to the treasury is not so great as when they are confined within proper and moderate bounds."

Apparently Hamilton, et al., understood supply-side economics.

He also links to a side-by-side comparison of Flat Tax, FairTax, and the current system, which is very helpful.

I was originally in favor of the Flat Tax, but I'm increasingly leaning toward the FairTax. I'll be interested to see what you economists and tax lawyers have to say.

Update: From the Johnny Russell Lexicon, OOC (pronounced 'doubleO-C') means 'out of control'