So on Dec 4th Glenn Beck was on the O'Reilly show and he floated the idea of a 2% Flat Tax tied to a balanced budget amendment that would go directly to the deficit for nor more then 10 years and would be a Constitutional Amendment. It was interesting watching these two, I will just use the word personalities, talk to each other. The exact words were that if we guarantee no more spending we need a tax to fix the deficit.
The first thing that I found surprising was that these two conservative personalities would put the idea of a flat tax out there. Now on the surface this sounds like a pretty good idea. But, I am not so sure. After I thought about it for awhile and read some things and talked to a few people I wonder how good it actually is. Putting aside the idea that it is odd that two leading conservative television hosts would advocate for more taxes. I found it odd that the amount infrastructure that would be needed to administer a flat tax is enormous. I was talking to my friend Steve about this idea and he raised an interesting point.
Steve said that regardless of whether or not you liked the idea of more taxes for what ever higher purpose. That the need for states and communities to have to develop a system to collect the flat tax revenue makes the idea a poor one. He countered with "why not, since the system is already in place nationwide to collect Federal Income Tax, why not just add 2% tax to that and earmark it strictly to go to the deficit." Steve thinks that the core base viewer for Beck and O'Reilly would not like them advocating for more taxes.
The more I think about it I think he is correct. Even if it is just on the logic side of things as how do you put together the infrastructure to collect that VAT. In some areas you would just be creating more government and we all know that the Beck style Conservative does not want to create more government.
There are lots of problems in America and one of the major ones is the deficit and how do we get out from under it. So, while it is interesting to hear figures throw out new ideas this one is not a workable one in my opinion. I also would like to hear from my readers. Do you think this is workable? What would work better? Why do you think we are in this position? Are we going to ever be able to actually get out of this hole? Please let me know your thoughts.