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Kansas, Nebraska and Louisiana Eliminating Income Tax

by Martin Armstrong
Armstrong Economics

Republican governors of Kansas, Nebraska and Louisiana are pushing to eliminate personal and corporate income taxes. While the Marxists/Socialist like Paul Krugman of the New York Times calls this “reverse Robin Hoodism”, the Founding Fathers were much more understanding when they prohibited direct taxation. An income tax requires one to surrender their privacy. Government needs to know everything you do and is now hunting down all Americans outside the USA. If the country used a 10% consumption tax, it would actually collect about 40% more revenue. It is not “reverse Robin Hoodism” but it then eliminates the difference between “illegal aliens” and citizens. An income tax only applies to the above ground economy and a consumption tax need not track the buyer so everyone pays. The Marxist/Socialists just hate anyone who earns more than them and this is all they look at. The “rich” they are so jealous about also spend more than the average person and hence guess what – they will naturally pay more on a progress basis according to their spending. Include a 2% tax on the transfer of property and guess what, all the people in government who are there to collect taxes are not necessary. Eliminate the income tax and you shrink the size of government sharply. Today the IRS collects over $2.4 trillion each tax year from around 234 million tax returns. They have 106,000 employees and Obama authorized the hiring of 26,000 more just for Obamacare. The total US GDP is $15.09 Trillion. A 10% sales tax and a 2% property tax transfer replaces the income tax reducing the cost of labor that would spark job growth.

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