Thursday, March 31, 2005

We're Rich, Say George Will and Rep. Linder

Let me take a cheap shot at George Will's column today, boosting Rep. Linder (R-GA) flat tax plan.
"Linder says Americans spend 7 billion hours a year filling out IRS forms and at least that much calculating the tax implications of business decisions.... Linder says the director of the Congressional Budget Office told him it costs individuals and businesses about $500 billion to remit $2 trillion to Washington. "

Simple math says 7 billion hours into $500 billion is $70+ dollars an hour. If the average taxpayer works roughly 2000 hours a year, that's $140K yearly, which is rich by my standards. This is a cheap shot because such estimates are wild-ass guesses, initially, which get solidified into gospel as they move further away from their bureaucratic source. It would behoove Congresspeople and columnpeople occasionally to check whether their statistics match up with common sense.

On the more serious point, Will tries to appeal to the goo-goo in all of us by claiming the flat tax would do away with K street lobbyists. I doubt it, the money power always finds ways to tweak the system for its interests, whether it's in earmarking spending or the fine print of legislation. But there is a big issue for liberals: would we trade our (supposedly) "progressive" tax system for a flat tax if in return we got the safety net of the old Europe countries (universal health care, paid family leave, etc.)? At least today I think I would.

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