I love thinking at the macro level. I guess my attitude is “think big or go home”. We have a lot of problems in this country that desperately need solutions. It would be great if one solution could solve multiple problems. That is what this post is about.
Problem No. 1 – Teachers aren’t paid enough.
Most everyone agrees that teachers, especially those at the primary and secondary levels need to be paid more. One solution is to make the school year longer but I don’t think the teachers’ union would willingly go along with that. Is there another way to solve this problem?
Problem No. 2 – There are too many lawyers
We are a nation of lawyers. We have more lawyer in the US than the rest of the world. That is a major problem, especially with their promises of getting you a lot of money with little effort on your part. They used to call these guys “ambulance chasers” but since that now seems a noble part of the profession, I’m sure it has another name. Another problem here is that most of those folks in Congress are lawyers. We need fewer lawyers in the country and especially in Congress. Is there another way to solve this problem?
Problem No. 3 – There are not enough Doctors.
With all us Baby Boomers getting old now we need more doctors in this country. The problem is critical especially in rural areas. Because they can generally make much more money in urban areas they just don’t want to put out their shingle in smaller towns. Is there another way to solve this problem?
Problem No. 4 – Our Economic Ladder Is Completely Out of Balance.
How can a ladder that is so top heavy even stay up? The very fat cats on the very top rung of the ladder have as much money as those of us on the ladder. We gotta do something about that before the ladder comes crushing around the rest of us. Is there another way to solve this problem?
Here is the drum roll….
Drastically Change How We Are Taxed.
Changing our tax system could solve all of these problems. Here is how:
- Let’s put a flat tax on everyone with additional adjustments layered on top of that. Let’s say 12%. I know you are thinking that is way too low, but wait for it…
- Remove all exemptions and make all income the same. It doesn’t matter where it comes from, it is income. No more capital gains loopholes, no more subsidizing religious organizations who have morphed more into political ones. Make the exemptions so simple that no loopholes at all are possible
- Add a tax adjustment that is occupation specific. I’ll leave it up to the bean counters to come up with the exact numbers, including the base rate above, but will give you magnitude examples here:
|Teachers at the primary and secondary level||-6%|
|Teachers at college level||-2%|
|Doctors in rural areas||+5%|
|Doctors in Urban areas||+15%|
|Income from inherited wealth||+30%|
|Income from… (fill in the blank)|
You get the idea. This plan would go a long way in solving all four problems identified here. Let’s make it a true capitalistic system of supply and demand.
But I also like Elizabeth Warren’s wealth tax idea of putting an annual tax percentage on inherited estates based on the value inherited.