Louisville Courier Journal reporter Stephenie Steitzer and CNHI News columnist Ronnie Ellis both caught up with House Budget Chairman Harry Moberly yesterday and reported the news today that he wants tax increases (here and here.)
We have heard it all before.
That may throw fuel on the fire of those concerned Gov. Steve Beshear is going to call a special session to raise taxes. But what we really need to be talking about is this:
Thursday, June 26, 2008
Shock: Legislator wants to raise taxes
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In Federalist Paper 12, Alexander Hamilton laid down guidelines for a tax system. He wrote:
"The ability of a country to pay taxes must always be proportioned, in a great degree, to the quantity of money in circulation, and to the celerity with which it circulates."
It sounds like he envisioned a toll tax on the movement of all moneys. Such a vision was prescient in that it seems that it would have to await the arrival of computers to track all those transactions.
Such proportional tax could eliminate the sales and income tax.
An excellent source of revenue would be banks. As they launder their drug money, they move it several times a day from one account to another. Every time such moneys were moved, a proportional toll tax would be assessed.
The rate could start as low as 1% and max out at about 5%. That 5% rate would go on for infinity. Such a proportional tax is the only way any tax can be considered fair.
If a tax isn't proportional, it's not fair. Exemptions would not be allowed. To do so would destroy proportionality and any semblance of fairness.
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