I am a proponent of "The Fair Tax". This would be a Tax system based on purchasing and investing power for individuals and companies. It has multiple levels or "pockets" that would be for exclusive governmental use but only in the area designated.I know this isn't a political board. But this has turned into a political thread so why not?
Example of a Individual or Corporate Fair Tax: The person (worker) would keep 100% of their earnings. This increases the individuals purchasing power immensely. Instead of now earning say $1,000 per week for 52 weeks (currently taxed at 25% rate thereby reducing their purchasing power to 75% or earnings) would keep all $52,000 (not the $39,000 in the current system).
You then place a flat tax rate on all purchases of goods, services or investments. Say 10% for sake of argument and ease of math. What you have effectively done now is provide people with 15% more purchasing power (25% back in the pockets and 10% removed during purchase). Out of that 10% are percentages that go automatically for specific governmental services. Military 4%, Social programs 4%, debt 2%.... etc. The exact particulars would be worked out.