Thursday, February 26, 2009

National Sales Tax

National Sales Tax


Here is a reasonable guess about how BHO and Company is going to get us to approve a National Sales Tax. First, you need to revisit my piece, “Prepare To Be Nudged” because you will recall that part of the science on how to get people to make the decisions you want them to make is to create the proper “Choice Architecture” in order to assure that the decision taken will be the targeted decision. The choice architecture must be constructed to not only limit the choices that will be available to make but it (choice architecture) must also guide the decision maker to the targeted decision because it seems to be the most reasonable and fair choice. You can rely on Professor Cass R. Sunstein to know how to create a choice architecture to enable BHO and Company to get the swooning citizens to support a National Sales Tax. Here is how you construct the choice architecture and how it will be done. Below is a chart on who paid what portion of the personal income tax in collected 2006 (AGI= Adjusted Gross Income):

Percentile by AGI........................ Percentage of Tax Paid

Top 1%................................................ 39.89%
Top 5% ...............................................60.14%
Top 10% ............................................70.79%
Top 25%............................................ 86.27%
Top 50%............................................ 97.01%
Bottom 50%...................................... 2.99%

First you propose to raise taxes on the wealthy (top 25% who already pay almost 90% of personal income taxes). This BHO has already done. When it is pointed out that excessive tax on the Government designated wealthy will not only run the risk of killing the golden goose, it is unfair as hell as well to keep punishing the productive of our society and rewarding those who contribute little. Notwithstanding that the bottom 50% are the very ones who receive the most from the Government after the Government takes it from others. It seems only reasonable that in a Democracy, all should contribute, right? Voila, a National Sales Tax by acclamation. Only the Dems could pull this off because they are the designated Party of the People.

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