I was reading a June 21, 2004 interview with Ralph Nader in, yes, The American Conservative magazine.
I was very impressed with Nader's tax plan - zero income tax on wages below $100,000 and the lost revenue made up with taxes on wealth and stock/bond transactions. I think it would do wonders to bring back the white, working class and middle class vote. Note: I'm assuming the plan would be at least revenue neutral -
Here is a link to the full interview which dealt with all topics not just taxes.
http://www.amconmag.com/...
Here are some excerpts from the interview:
PB: Can we move on to taxes? Reagan cut the top tax rate from 70 percent to 28 percent in terms of personal income taxes. Clinton raised it to 39.6. Bush has cut it back to 35 percent. What do you think is the maximum income-tax rate that should be imposed on wage earners?
RN: Zero under $100,000. Now you got to ask me how I am going to make --
PB: What is the rate above $100,000? What is the top rate?
RN: Then you have a graduated rate. Thirty-five percent, in that range, for the top rate. It comes down to the loopholes. When it was 70 percent, did you ever meet anybody who paid 70 percent?
Now, where would I make it up? This is where the creativity comes in. I would move the incidence of taxation, first, from work to wealth
I welcome feedback, as I may be wrong. But wouldn't most working class and middle class citizens receive a big tax cut under this plan? Wouldn't wealthy people and large corporations pay much more? Wouldn't this be a way for the Democrats to gain an advantage over the Republicans on the tax issue?
Ralph Nadar has a point. If we buy a piece of furniture we pay a sales tax. If we work for wages, we pay an income tax
But if you buy a $100,000 Treasury note or 1000 shares of stock, you pay nothing. Isn't the benefit of a progressive income tax more than offset by a regressive sales tax and the FICA tax? Shouldn't we move from taxing wages and non-luxury consumption to taxing the wealth? Wouldn't it be more fair? And wouldn't it help bring back the white working class and middle class vote?