I am opposed to net new taxes, and believe that reducing spending as well as eliminating our counterproductive income tax code is the most important goal we should strive for in pursuit of economic growth.
I am also in agreement that we need a serious conversation about the consequences of a debt-based monetary system, and the resulting need to perpetually enslave our nation to higher taxes and less freedom as a result of growing interest payments on perpetually-growing debt.
My question, though, is how do we get from Point A to Point B? It seems that we will need taxation to fund government, and I believe that we should tax things we don’t want, and not tax things that we DO want. That is, don’t tax income — we want more jobs, income and productivity. How about taxing consumption that has negative side effects? My support for a so-called “carbon tax” reflects a desire to get to a method of taxation that is direct, Constitutional, and takes into account “negative externalities” — that is, hidden costs which affect everyone negatively.
I’m less sanguine about the FairTax, because that puts the federal government (directly or indirectly) in a position of control over *every* retail transaction. Even essentials like food. It seems odd that we should have to pay tax to the feds to eat.
The idea of a “consumption tax” targeting consumption that is non-sustainable, non-renewable, and that has negative effects on the environment is more justifiable, however. Regardless of whether one believes that climate change is man-made, there are negative side-effects to consuming nonrenewable resources at accelerating rates. So why not tax nonrewable consumption to reflect the fact that burning stuff dirties our environment?
Bottom line is that I’m absolutely committed to reducing the size, scope, and complexity of government. Cap and trade is a disaster waiting to be gamed by corporate interests, and a simple, well-executed carbon tax targeting negative externalities could be, in my opinion, a great replacement for a disastrous system of income, capital gains, and estate taxation.
Downsize DC has some excellent commentary on the fallacy of cap and trade here:
http://www.downsizedc.org/etp/campaigns/93
BJ