What does good government look like?  The Sustainable Tax believes that this is a government that maximizes your freedom of course, but more specifically maximizes your freedom in the economy by efficient taxation.  However to answer this question to your satisfaction, it begs an equally important question.  What is the appropriate way to fund that government, because we all know that giving the government money is like giving whiskey and car keys to teenage boys?

Briefly discussed below is “efficiency” as the philosophy behind the sustainable tax.

Efficiencies:

  • eliminates distortion in economic decisions
  • no tax credits, exemptions, or deductions to favor any sector or demographic in the economy
  • maximizes desired output by funding government 100%
  • debt is impossible
  • doesn’t require taxing everything from income, money, and all other transaction taxes
  • promotes efficient business practices since efficiency equates to a lower tax burden
  • promotes stability in economy

PHILOSOPHY

The core philosophy of the sustainable tax is efficiency.  The sustainable tax shifts the economic power to the individuals who better manage assets to create wealth.  It is important to note that “power” in this context is defined by the ability to set the price of goods and services and the ability to control those resources by preventing others from using them.  The sustainable tax pits the good and bad managers that have economic power against each other as opposed to the rich shifting the tax burden to the poor as occurs in the current system.  The less resources required to produce goods and services and better management in producing those goods and services equates to a lower tax burden.  Individuals that run their business poorly will have less of an incentive to continue since they may pay more sustainable tax.

The sustainable tax is devised so those who put a lot of energy into the economy can reap the benefits accordingly.  It allows the “little guy” with the same smarts and drive take a shot.  What you take out should be related to what you put into the economy and you should never be able to take out more than you put in.  Warren buffet for example has the right to take a lot out in the form of resources that he controls because he makes good decisions, but he should still pay taxes on those resources he controls.

While considering the sustainable tax formula, note that the tax rate is really being set by the economy and government spending.  If the economy is being run efficiently, there will be a large tax base to support government spending.  The sustainable tax formula most importantly makes it clear that government spending is what determines the tax and not whatever you send the IRS.

Economics trumps everything because money by definition is how we value things and how we organize our relationships.  The most important thing that government does is to create a structure in which we have freedom.  The Sustainable Tax equitably and efficiently funds government allowing the maximum possible economic freedom.  Benjamin Franklin once said “…but in this world nothing can be said to be certain, except death and taxes.”  TheSustainableTax.org challenges Benjamin Franklin’s claim to the latter certainty.