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08/01/2004: "IRS, RIP?"

Drudge reports that President is going to propose eliminating the IRS. LGF readers are agog.

I like the idea, but I'm not sure it will fly.

First, the alternatives to our current tax system seems to hit poor people relatively hard. The tax rate on the rich is about 30%. The tax rate on the poor is about 0%; less, if one considers earned income tax credit.

Second, the current system offers breaks to many protected classes. New York homeowners, for example, get to write off their high property taxes. Loopholes tend to have a large number of people in mild opposition and a small number of people in strong support. Our tax system has a lot of loopholes. As people scan the long list of loopholes to be eliminated, they'll ignore the myriad of loopholes that don't help them and concentrate on the small number of loopholes they like. They'll ignore the overall good to themselves and oppose the plan.

Again, I like the idea. I hope and assume that the Drudge report is true. I like that President Bush is being bold. I hope to read more precise proposals.