Where Do My Readers Come From?

Friday, February 27, 2009

Obama and his budget

So in the wake the purposed budget that President Obama has purposed. I was wondering if people had any thoughts on the pros and cons for say a Value Added Tax or a Flat Tax versus the system that is in place now. I tend to flip flop about these because I am just not sure of the overall benefit.

I like the, and I could be wrong, potential for fairness of the Value Added Tax in that the more expensive an item is the greater the tax rate on it. That seem pretty simple to me because if you do not want to pay the higher tax then you do not buy the item. I also see in some way the benefit of the Flat Tax in that if it is 10% it is always going to be 10% and it might take some of the confusion out of paying your taxes each year.

Now I am well aware that perhaps I am just not understanding what these various tax types do and the effect on them. So if that is the case please feel free to enlighten me. I await with interest your responses.

1 comment:

Van Harvey said...

When there are no restraints upon how much money can be taken from the people, their businesses or institutions - which method is used to cover it's being taken, appropriated or printed, is immaterial.