Friday, May 29, 2009
I am willing to consider reforms of the tax system. I have attended rallies for the "flat tax," the "fair tax," and a few others. One thing they have in common is that EVERYONE in attendance (that I talked to) thinks he or she will pay less under the proposed new system, despite claims that the proposals are revenue neutral. The rich, middle-class, and poor all think they will pay less. But they cannot all be right if the new tax will generate the same revenue as the taxes it replaces. So who is being deceived? My bet (and that of most economists) is that the poor and middle-class are being mislead (again). The wealthy and powerful have a potent propaganda machine.