Since The GOP Likes A Sales Tax So Much . . .

The Republicans have made it very clear that they hate the income tax -- especially a progressive income tax that taxes the rich at a larger percentage than those who make less in income. While the progressive income tax (the idea that those who make the most from our society should owe the most in taxes back to that society) has always made sense to most people, but not to Republicans. They much prefer other kinds of taxes, more regressive taxes like the sales tax (which makes the poor, the working class, and the middle class pay a much larger percentage of their income in taxes than the rich).

Even now, the Republicans want to revise the tax code to allow the rich (who already pay less due to a lower capital gains tax rate) and the corporations to pay less in income taxes. They want to do this in spite of the fact that it is obvious that our government needs more revenue -- not less (and the rich and the corporations are already paying less in income taxes than at any time since World War II).

Personally, I think the opposite should be done. I think the rich should pay a small increase in tax percentage, and the corporations should lose the loopholes and subsidies that allow them to pay little or no income taxes. But that won't happen since the GOP controls Congress. So I suggest another idea -- one which should appeal to the GOP since they like sales taxes so much. We need to institute a new sales tax on the national level.

It is an idea that has been gaining popularity in the last few years. It is a sales tax of 0.5% on all stock transactions on Wall Street (commonly called a Robin Hood Tax). The tax would be tiny enough that it would have no effect on Wall Street and the business it does, but it would pour billions of dollars (maybe hundreds of billions) in badly needed new revenue for the government.

This seems fair to me. If the Republicans like a sales tax so much they are willing to impose it unfairly on the poor, working, and middle classes, then it should also be imposed on the purchases the rich hold so dear -- the stock trades that allow them to pay a smaller capital gains tax rate on income.

I doubt the GOP Congress will do this. It taxes the rich, and that's the group they are dedicated to save from having to pay taxes. The GOP doesn't mind taxes -- as long as the rich and corporations don't have to pay them. But it is still a good idea, and we should be pushing the idea so it can be accomplished as soon as Democrats regain power.