No. of Recommendations: 5
As I recall, in Iraq, the US wanted all oil revenues to be distributed to the people then be taxed by the Gov. That way, everyone had a real stake and could see the cost of the Gov. If they just got a "post-tax" payout they would never know what they are missing. For that same reason, I would like to see all people pay an INCOME tax (at some rate) so they can see their taxes rising as "services" rise. Maybe there would be a little more care about what the gov is spending.

I agree with this completely. I once proposed a *true* flat tax, meaning that there are *no* exemptions, personal deductions, or tax-free income, and *all* income would be subject to one low flat rate. Everyone would have the exact same marginal and effective tax rates. The tax rate would be pretty low because the tax base would be maximized by eliminating exemptions, deductions, and tax-free income.

This wouldn't fly with a lot of people though, so we could subsidize the exact same things as we do now through the tax code, except do it *explicitly* through spending.

For example, the tax code currently subsidizes home ownership through mortgage interest and real estate tax deductions for those who itemize deductions (i.e. mainly taxpayers with higher incomes). We could still subsidize this by forcing citizens to go to a different government department and filing a separate form to collect their goodies. Then the government could send them a check, making the spending completely explicit.

Of course, this wouldn't fly with our politicians, because if it's one thing that they hate, it's making things explicit and transparent.

I was trying to come up with a good name for the new department to distribute the goodies. The one that I came up with was:

Department of Government Goodies that I Didn't Earn but Still Feel that I'm Entitled to Just for Being Alive

It just rolls off the tongue. :-)
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