We often talk about sales tax being the answer to our problems. And yes, that idea has some merit, without a doubt. But, as we've seen recently, a sales tax doesn't fix the problem either....a prolonged period of economic slowing hurts the collection of sales taxes, no-one buys anything if they're not working.
Oregon's one of the two?? states that doesn't have a sales tax.....If you look at the states that are in trouble financially(about 8, I think, according to news reports), I believe they all have one thing in common. NO RAINY DAY FUND!!! These other states have sales taxes, but they aren't any better off than we are!!
I read a report in the CNN business section recently about how some states who rely solely on sales taxes look at Oregon for a model, because of the varied tax base that we have! I submit that our problem is NOT the income tax, it's caused by the out of control growth in state government (caused by BOTH parties), property tax measures (Measure 5, putting the school funding burden on the general fund), PERS, and the lack of a rainy day fund!!
One of the most common gripes from the Republican Party is that the government should be run more like a business. In many ways, I agree....most importantly, accountability. However, most of the small businesses I know of, and all the large ones, have a cash reserve.....a "rainy day" fund. So who kills the idea of such a fund each and every year??? Yup, you got it!!
As for flat tax, yes, in a perfect world, it makes sense....but we know better. There will just be new types of tax shelters for the rich, and new tax credits for the poor, and those of us in the middle will continue to get shafted.
My rant for the day, time to go to work.