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Comments

Verdant

Hi Surfer,

It's difficult to know the proper tax rate. One thing is for sure, however, is that we must close our twin defecits: the budget defecit and our trade imbalance. These defecits will close as foreign curriencies appreciate against the dollar. One solution: if we find that a country is a currency manipulator, we are permitted to manipulate their currency in an apropos manner! Another issues is the fact that other countries don't respect our patents, even though they have agreed to do so. Solution: sue them, procure judgements, and process our claims.

Solid Surfer

That's a great idea regarding foreign currency and patents. I totally agree that we need to shrink the budget deficit; spending in Washington has gotten out of control, and we definitely need to reign it in. At the same time, another way for the government to increase its revenues would be a flat tax, such as the one proposed by Steve Forbes. (I've actually planned to review his book "The Flat Tax Revolution" on this site for quite some time, but have always postponed it as more pertinent news has arisen. But now with tax season approaching, I'll probably revisit it soon.)

On the other hand, though, I don't think our trade deficit is much to worry about, because we finance it by borrowing from foreign investors, and as long as our GDP keeps up (which it has and is), this debt poses little risk to us.

Milo

I agree and think the flat tax is a great idea.

Solid Surfer

I'm with you on that. In my opinion, there's a few kinks that need to be worked out in Forbes's plan (I plan to address them when I review the book), but overall it's a great idea.

Also, many other countries in Eastern Europe and Asia have implemented flat taxes to great success.

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