Newt Gingrich's 'Romney tax' not a bad idea
Newt Gingrich has suggested a flat tax rate of 15 percent, which he now proposes to call the 鈥淩omney Tax.鈥� But Newt Gingrich's proposal won't happen because a complex tax code provides cover in which to hide special favors and privileges for the rich.
Newt Gingrich has suggested a flat tax rate of 15 percent, which he now proposes to call the 鈥淩omney Tax.鈥� But Newt Gingrich's proposal won't happen because a complex tax code provides cover in which to hide special favors and privileges for the rich.
Dow up 96 yesterday. Gold up $4. Oil above $100. Nothing special to report, in other words.
Mitt Romney has revealed his effective tax rate. 鈥淎bout 15%,鈥� he says.
That seems like more than enough to us. But it鈥檚 not enough to satisfy the zombies. Romney has made a lot of money. They want more of it.
It turns out that 15% is lower than average. The AP reports:
Newt听Gingrich has suggested a flat tax rate of 15%, which he now proposes to call the 鈥淩omney Tax.鈥�
But the zombies not only want a higher rate (so they can squeeze the producers a bit harder) they also don鈥檛 want a flat tax. They prefer a confusing, complex, and ever-changing tax code, with 10,000 rules and 20,000 exceptions. Why? Three reasons:
First, complexity provides rich cover in which to hide special favors and privileges.
Second, the more special favors available, the more campaign contributions, donations, job offers and speaking fees Congress can count on.
Third, and don鈥檛 forget the lawyers and accountants 鈥� the corrupt insiders 鈥� who make money by helping lay the mines鈥nd then helping taxpayers get through the minefields without blowing up. Sure, you could replace the government鈥檚 revenue with a much simpler tax system鈥ut you鈥檇 inconvenience the zombies.
In short, the tax system is completely corrupt. It is a drag on the whole economy鈥ut it serves the zombies well.
Regards,
Bill Bonner,
听for The Daily Reckoning