Utah can help lead U.S. to flat tax, Forbes advises
System would boost development, he says
Let us count the descriptions: "A huge dead weight." "An abomination." "A source of corruption and corrosion." "Beyond reform." "A hideous code that nobody understands." "A monstrosity."
And that was just during a Wednesday morning speech.
But Forbes, president and chief executive officer of Forbes Inc. and the owner and publisher of Forbes magazine, said a flat tax system would boost economic development and government revenues, and that Utah can have a role in perhaps ultimately having a federal flat tax.
"Bottom line, what you do here in Utah is going to have an impact ultimately on the national debate," Forbes said during the annual meeting of the Economic Development Corp. of Utah. "If you do it here and show that states can do it and do it successfully, ultimately Washington will do it."
A low flat tax Forbes suggests a 17 percent rate with "generous" exemptions will create wealth for Americans and prompt economic growth through "more innovation, more jobs, more expansion." But, he said, people need to understand that taxes do more than raise revenue for government.
"Taxes are also a price and a burden. The tax you pay on income is the price you pay for working. That tax you pay on profits is the price you pay for being successful. Tax on capital gains? The price you pay for taking risks that work out," he said.
"And the precept is very simple, but too often not reflected in public policy: When you lower the price of good things like work, productivity, success and risk-taking you get more of those good things. Raise the burden and price on those good things, you'll get less of them. If you understand that and grasp that seemingly simple concept, which too many policymakers around the country and world don't, then you understand the imperative of a flat tax."
Such a tax will cause people to do things for the right reasons rather than deciding based on tax ramifications and scrambling for deductions and write-offs, he said.
Plus, flat taxes have been proven to work in several places already, including Hong Kong, Russia, Slovakia and Ireland, he said. "Make it simple. Make it low. It works," Forbes said.
Even in the United States, tax cuts have led to wealth-building and prosperous economies in the 1960s, 1980s and since May 2003, he said. Since that latter time, the U.S. economy has grown more than $2 trillion more than the entire Chinese economy, he said.
The current federal income tax code has "9 million words and rising ... and there's not a soul in this room or in the world that knows what's in that tax code." That includes experts, and even those at the IRS, he said. Plus, the code has been amended 20,000 times, and 3 million words have been added since it was "simplified" in 1986.
Comments
- Funds for new courthouse approved 1:48 a.m.
- Godfrey vetoes Ogden budget 1:48 a.m.
- Odd Fellows Hall move 1:47 a.m.
- 2 country groups to perform 1:47 a.m.
- Rumor has Boozer with Bulls 1:20 a.m.
- Jazz in back of line for free agents 1:19 a.m.
- Okur signs two-year extension 1:18 a.m.
- Marion to Mavs, Stackhouse to Griz 1:16 a.m.
- Price for redistricting plan challenged 1:04 a.m.
- Basketball campers learn service 1:02 a.m.
- Rumor has Boozer with Bulls
- Stadium of Fire flag burning was fake
- Jazz in back of line for free agents
- Okur signs two-year extension
- Restaurant destroyed by fire
- A primer for the 6th Potter film
- Jazz won't meet Lopez on Europe trip
- Blazers may offer Millsap a contract
- MWC, WAC rushed into BCS
- AK will not play for Russia this summer
- Bronco collecting a galaxy of recruits
138 - Letters: Palin mistreated
136 - Teachers struggle with district cuts
134 - Blazers may offer Millsap a contract
122 - Rumor has Boozer with Bulls
82 - Fairness of BCS debated
81 - Moon landing: Let's hear from you
73 - Chaffetz eyes challenging Bennett
72 - Services bids farewell to Jackson
70 - Letters: Time for a revolution
69
Through the years, I've always raised eyebrows whenever I tell people...
The photographs are mysterious, brooding, dark. They show dimples and...
Blazers get the unbalanced trade they seek while not signing Millsap away...
Ricky Bobby - THE JAZZ DO NOT WANT TO TAKE BACK EQUAL SALARIES. They want to...
Despite the fact that logging has all but stopped in the pacific northwest...
My understanding of what FAIR is trying to do, is to provide well thought out...
Jazz will resign Milsap. If they don't it will be ahuge mistake. First off,...
I was waiting for it to be burned on the big metal structure right by the...
Hey Ute fan... the Utes had a good season. And keep throwing that BCS bowl...
Tyrus Thomas is in the last year of his contract too so what is the point for...
CougarKeith, people don't know how to properly retire the flag, what they did...
It is just talk but since it was brought up: IF we can get Prizbilla &...




You can be the first to comment on this story.