I’ve been assuming all year that Mitt Romney would pivot to Obama’s left on economic issues (say, on regulating banks, a higher minimum wage or payroll tax cuts). So I was pretty astonished that he’s somehow managed to move right of Reason Magazine, the National Review and Grover Norquist’s Americans for Tax Reform. Who knew this was even possible?
“While conservative activists are circling their wagons around Mitt Romney and encouraging to stand by his claim that the 47 percent of Americans who don’t pay federal income taxes are essentially mooching off the government, prominent policy voices on the right are dismayed by his comments — both because they’re inaccurate, and because they cut against fundamental conservative cause.”
On a related topic, I’ve been reading lately about the IMF proposal for a Financial Activities Tax (or “FAT”), basically a variation of the VAT tax that would apply to the financial industry (which is otherwise exempt in existing VAT regimes).
Since unlike the Europeans, we don’t already have a VAT, the easiest way to move to one would be by levying a FAT on th3e entire economy and not just the financial sector (using the revenue to cut other taxes). Essentially it would be a tax on payroll plus a tax on excess profits. In fact, since we already have a payroll tax, it’d make sense to build up from there, converting the Federal Insurance Contributions Act tax (FICA) into the Federal Insurance Activities Tax (FIAT).
I just wanted to be the first to go on the record endorsing a Fiat tax on our Fiat money. )