When Warren Buffet goes into the store to buy socks, the clerk does not ask him how much he earns in order to determine the price to charge him. The store sets a price to cover the cost of the socks plus a profit and charges the same price for all.
Why does government not follow this private sector model when it comes to charging for government services? Government should charge users of government services a fee to recover the cost of the service plus a surplus (if desired).
General taxes (income, sales, property, estate, etc.) do not match payment to the government for services rendered and thus are inherently unfair. People with high incomes, high spending, much property, or who die wealthy pay more than their fair share to fund government.
If President Obama is truly interested in having everyone pay their fair share, he should push for the elimination of general taxes to be replaced by revenues based on a fee for service basis.
Thomas C. Schuelke, Mesa
Dale Whiting posted at 8:35 am on Sat, Sep 10, 2011.
Thomas,
The granduated or progressive "income tax" has been in existence from the time taxes on income were initiated. Flat taxes have been around even longer. When it comes to taxing citizens for the services goverment provides, one of the more vexing problems is measurement. Warren Buffett pays a flat sales or "transaction privilege" tax as does most very one else. [Online buyers often skate around these taxes]. Most taxes on commerce are flat. In comparision to graduated income taxes, these flat taxes look regressive.
Chances are, you are doing rather well in comparison to the average person. Would a flat income tax either freeze or drop you tax rate? If you looked at the pay stub of the average worker, you would see 'flat' payroll taxes, FICA, etc. President Obama has just recommended these taxes be adjusted downward. In some instances these taxes would be eliminated.
What is curious is that if one looked at Warren's taxes, his rate is lower that that of his employees. Sure because he makes more, he pay more. But if a flat tax were imposed on Warren, chance are, he would be paying even more. There are loop hole galore in our progressive tax system. President Obama has called for action to correct that, too.