Change the way the country taxes all

The Republicans want to lower taxes, reduce government spending and expect businesses to use the increased profit to increase employment even if there is no increased demand for their products and/or services. Democrats want to increase government spending to create jobs with or without increasing taxes except for the rich.

Both of these approaches seem counterproductive. Why not reduce the cost of labor for all businesses and non-profits by a tax switch?

Eliminate corporate and personal income, Medicare and Social Security taxes and replace half of the lost income with a value-added or sales tax. Replace the other half with a tax on net worth. A rough guess as to the result:

15 percent sales tax with no exemptions (20 percent with some exemptions) and an annual 1 percent net worth tax

($5 million personal exemption with no exemption for trusts, businesses, non-profits, etc.).

Everyone, especially those who don't now pay income tax, would pay the sales tax. Those in poverty would continue to receive assistance. All the non-working rich would pay the net worth tax. The businesses that pay no income tax would pay the net worth tax as would the non-profits - all of which benefit from government services, facilities, national defense and entitlements.

Every person and entity pays. Taxes are merely switched so the deficit is not affected. The cost of labor is reduced significantly, effectively encouraging firms to hire. U.S. jobs will be increased.

Ron Moore

Cedar Rapids