Reinvent Illinois

Taxes

Posted on 07. Jan, 2010 by Wayne in Reform Ideas

The states are all in deficit spending right now. It tells us that the current taxing system for all states is broken. It has been built on the expectation of continuous growth in the economy of each state and the value of its real estate.
It is also the result of tax dollars going to Washington and then being redistributed back to the states with added expenses being a condition of receiving federal dollars.
In the grand scheme of things, the federal government needs a flat tax of no more than 10%. The state governments must lobby for this to happen.
The state givernments need to levy a VAT according to the needs of each state’s constituency. This will return control back to the people at the local and state levels without the added expense of the federal bureacracy.
The VAT can be instituted quickly by state governments. Illinois needs a solution quickly or we will continue the rapid spiral into bankruptcy. The loss of jobs tied to state funds has begun and will continue at an acclerated rate if we don’t institute this small tax on everyone immediately.