(03-08-2017 10:38 AM)BobcatEngineer Wrote: (03-08-2017 07:31 AM)Owl 69/70/75 Wrote: Bismarck health care, 15% consumption tax, 15% social security payroll tax with no ceiling, Boortz-Linder prebate/prefund set at 30% to offset consumption and payroll taxes, and 15% flat tax on all business and investment income, with no personal income tax, would balance the budget, provide a far more comprehensive welfare safety net than what we have now, eliminate the welfare trap that locks people into poverty, and make us more than tax competitive with the rest of the world for attracting future investment and jobs.
Owl, can you explain to me what the Boortz-Linder prebate/prefund is exactly? I tried doing a couple google searches and a lot of the results direct me to something called the "The FairTax Book". I know I'm being lazy, but I'm at work and don't have the time to do an in depth search and I was hoping for a brief explanation.
I am familiar with the Bismarck healthcare model though.
It's an adaptation of Milton Friedman's negative income tax to a consumption tax environment. I'd be happy with either approach, but since I'm going with a consumption tax, Boortz-Linder fits better.
Basically, everybody gets a government check, or electronic transfer, every month. The homeless guy living under the bridge gets it, Bill and Melinda Gates get it, everybody in between. It's based on the poverty income level. If the prefund/prebate rate is 30% and the poverty level is $30,000 for a family of four, then they get $9,000 a year, or a check for $750 every month. Bismarck health care at $2750/person (about where France is now) gets them up to $20,000/year, based on the way poverty statistics are kept. That keeps them alive. A full-time job at the current minimum wage puts them above the poverty line.
This works for two reasons:
1) There is no means testing to require an excessive gatekeeping function, so admin costs are much lower than under current welfare, and
2) It doesn't go away as your income increases, so there is every incentive to go get a job and none to stay on welfare.
It's bad for fat cat bureaucrats, and it's bad for real estate prices in northern Virginia and southern Maryland. When the three counties with the highest average household income in the US, and 7 of the top 12, are in the DC metro area, that's precisely to whom something bad needs to happen.