Monday, July 13, 2009

On Fair Taxation

If we are all to be taxed in order to pay for our government, then we must all be taxed fairly. I propose sweeping changes to our tax code in order to make it fair and equitable to all citizens of this great state. I propose a flat income tax.

Flat taxes are used currently in 7 states. Under a flat tax proposal, everyone pays the same rate. Our current tax brackets require everyone who makes up to $150,000 annually to pay 4.75% of their income. I say we keep it that way for everyone - at the top and at the bottom. Those who make less than $2,000 a year shall be exempt from paying income taxes.

The concept seems simple and that is why it works. With a flat income tax rate, everyone pays the same percentage of their income. The flat rate allows for equality while retaining the "progressive" concept of the income tax whereby those who can pay more, do. At 4.75% those who annual incomes are $10,000 or $100,000 will pay $475 or $4,750 respectively.

Incumbent 6th District Delegate John Olszewski wants to increase the income tax on a regular basis based on inflation. This would increase the income tax rate based on the CPI. I do not see the utility in modify the income tax rate based on inflation. If the worth of the dollar changes based on CPI then a percentage of that dollar will change in worth to the same degree. This feels like an attempt at generating revenue for the State more than an attempt to keep up with inflation. It is not a fair income tax system and I oppose it.

My proposal will keep the income tax rate the same for everyone. It is fair to all citizens, including those millionaires who we want to keep living here in Maryland. As always, opinions are welcome.

1 comment:

The Right Miller said...

Tax reform is one of the pillars of my fiscal responsibility plan for Maryland. A flat tax or the Fair Tax ought to be on the table. Thanks for bringing this idea to light.