The state needs to find a way to raise revenue to finance the state budget.
As an economist I always argue throwing away all tax structures and replace it with a VAT system (Value added tax). The beauty of this is if you don't spend your money (savings), you don't get taxed. If you spend your money (buy), you pay a tax. You pay more tax when you buy a luxury item (Escalalade) then if you buy a cheap item (Sentra). It is as simple as that. You don't need all kinds of tax breaks (401K etc.) and you closed all the loopholes. Everyone pays the same precentage and the haves pay more than the have-nots. On top of this there will be a corporate tax to even out the score.
The total state budget must be a percentage of the state's GNP. Thus the income as well as the budget will follow the GNP. Simple as that.
No tax preperation, no tax auditions, etc. The general public can save money by not attending tax courts and tax preperations.
Of course goods will cost more but the govt is not garnering your pay check. It is something that we have to get use to. On the long run we won't be bickering with tax rates among the rich and famous.
The trouble is most of our law makers are lawyers and this system is going to hit them in the wallet, so I don't see this happening.
