The Tax Code Drained the Middle Class and Destroyed the EconomyReader comment on: Unintended Consequences Submitted by Eugene Patrick Devany (United States), Jun 14, 2012 18:43 It seems that Mr. Conard does not acknowledge that for at least 20 years, the tax code has redistributed at least $1 trillion in income and wealth from the middle class to the top. The unintended consequence is our prolonged economic downturn with no end in sight. His proposed solutions are awful. If you enjoy real tax reform and economic solutions you might like the nuclear option in tax plans: The 2-4-8 Tax Blend is a powerful and resilient way to tax because it adds a VAT ($10 trillion sales base) and net wealth tax ($53 trillion individual base) to the income tax ($13 trillion individual and corporate base). The Bowles-Simpson Commission was not permitted to consider these tax bases and congress apparently does not think the economy is important enough to even study the options. For Business: 8% corporate rate and 4% VAT – ("tax perfection" with no downside) For Individuals: 8% individual rate and 2% net wealth – [excluding $15,000 savings and all retirement funds] It produces $500 billion more in revenue [about 18.5% of GDP] with no need for payroll, estate, and capital gains taxes or deferral of foreign income. This simple tax code creates an economic ecosystem of sustainable growth and investment freedom. With no government stimulus a typical family would save or spend $640 more per month, business would add jobs to meet the increased demand and owners would reap handsome profit. No person has identified a legal, logical or economic reason why the 2-4-8 Tax Blend would not produce sustainable economic recovery. If anyone can I will take down my web at http://www.TaxNetWealth.com. Eugene Patrick Devany, JD, MPA Note: Comments are moderated by the editor and are subject to editing. Other reader comments on this item
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