Sliding Down Laffer’s Curve

I favor flat taxes: the principle of the tithe. There is no “graduated tithe.”
The tithe is good enough for God. Ten percent should be more than enough for all the imitation gods — combined — that want to get their hands into our wallets.
I favor direct flat taxes on real estate, but only at the local level: the county and city (50/50 split). States should tax only cities and counties. The federal government should tax only states.
I favor local sales taxes because they are necessarily flat taxes. Also, many of them can easily be evaded: the Internet and UPS. Finally, they are collected from local businesses, not from individuals. I prefer to keep taxation away from individuals. I favor liberty for living, breathing individuals. I am less concerned about liberty for judicial, non-breathing individuals: corporations. Corporations should be taxed by the states in which they are incorporated. (I recommend Nevada.)
But wouldn’t my plan starve the federal government? No, but it would make it look more like Manute Bol than a sumo wrestler.
We can make it look like what it was as a percentage of the net private product (net national product minus government spending) in 1789. Then, if we work long and hard, maybe we can get it back to where it was in 1787. That would be good enough for me. I do not want to be thought of as a Utopian.
THE LAFFER CURVE
Arthur Laffer recently wrote a defense of the corporate VAT tax substitution being proposed by Rand Paul and Ted Cruz.
Dr. Laffer understands that there are conservative opponents of his flat VAT tax plan. He doesn’t seem to know why. I know why. The reason is expressed by Dr. Laffer.
The U. S. government should collect taxes in the most efficient way possible so as to do the least damage to the economy.

This post was published at Gary North on Gary North – November 27, 2015.