Wednesday, August 11, 2004

More information about the tax law

If a person asked me what was wrong with the current tax system, I would first ask if they have ever done their own taxes.

If they said no, I would explain the large amount of money/time that is being wasted doing taxes.

If they said yes, I would go on to explain that your money is getting taxed more times than coach Phil Jackson has won an NBA championship.

So needless to say, I was very interested in a fox article which gave me a little back ground.

This is what I learned:

"This is why many nations, such as Russia, Slovakia, Hong Kong and Estonia, have adopted flat taxes. It's also why jurisdictions that rely on consumption taxes, such as the Cayman Islands, are so prosperous. "

I did not know that. What have been the historical growth rate of these countries? What other factors have affected the growth rate of these countries? I know the EU has had extremely slow growth compared to America, but how have these countries fared.

I support this option: "the sales tax takes a small slice of your income as it's spent."

I can control what I spend much easier than I can control what I make. Also, I am a saver and not a spender, though I would take either option over the tax system that we have now.


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