Chocolate and Gold Coins

Friday, November 18, 2005

Personal Tax Cut

Some people always vote for candidates who promise tax cuts. Others worry that tax cuts will lead to deficits and bankrupt our children. This is a classic conflict. But maybe we can please both types of voters.

We can allow for personal tax cuts. People who don’t want to pay so much tax this year can push some of this liability to future years. Of course, this debt will collect interest, but that would be their choice. The government would know that these people could pay the money back later, so why not let them be happy for a while?

For the people delaying taxes, it might be great if they use the money to invest in a new business or to avoid a temporary crunch in finances. For everybody else, this will reduce their taxes because the tax delayers will end up paying these taxes with interest.

This enables all of America to take advantage of what credit card companies have learned: there is good money in letting others get deep in debt.

Another one with little chance of winning.


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