Take Personal and Corporate Income Tax Rates to Zero

Take Personal and Corporate Income Tax Rates to Zero

Count TEK2day in the group that is not in favor of quantitative easing after having lived through the 2008 QE period. We favor a reduction of federal corporate and personal income tax rates. In fact, take income tax rates to zero. Institute a “pay-as-you-go” national Sales tax on finished goods and services for both corporations and individuals.

In an effort to stimulate the economy in the face of COVID-19 we 100% disagree with U.S. economists who believe that consumers will not spend incremental income gained from income tax cuts. We are a nation of spenders – not savers. An informal survey of my extended family shows spending over the past few days on: digital movie rentals, toys, sports equipment, take out food and online purchases of basic household items. Sure, hotels, airlines and high-end restaurants will suffer. However, other elements of the consumer economy march on.

Government of course would prefer to take their tax revenue “off the top” versus on the back-end. Another example of the tail wagging the dog.

Here is a breakdown of tax revenue by year by source as published by the Tax Policy Center: Tax Revenue Table