Allowing Tax Restructure to Welcome Immigration Reform
I am a believer in working with what one has at the
moment. We now are on our way to
immigration reform. It appears that many
are worried about the cost to the state and federal budgets in regards to
healthcare and assistance to these new immigrants. This could be a win-win situation if the
changes were linked to Tax Reform. Tax
reform hopefully will be on an upcoming agenda for change. It could be an incentive to welcome immigration
reform. The tax could be changed to a
consumption tax that exempts essentials such as food and healthcare. I am not referring to a value added tax or
VAT such as exists in Europe which is in addition to the income tax. I am referring to no income tax and other
current taxes but a consumption tax only.
Everyone pays but essentials as mentioned above are exempt. Those worrying about the cost of immigration
reform would no longer have an argument.
The new immigrants would be paying for themselves. There are several suggested plans circulating
for consideration. One is the Fair Tax (Amadeo,
2011). I have included the reference below
with pros and cons for that particular suggestion. Do review. There are other formats of consumption taxes
besides the Fair Tax. I do feel a consumption tax could solve the budgetary
worries of the immigration reform better than a flat tax as some are suggesting
for tax reform. Why not solve two
concerns with one movement? What
suggestions or leverage could be waged to tie these together?
Amdeo, K. (2011, November 30). Fair Tax.
Retrieved January 5, 2015, from
http://useconomy.about.com/od/fiscalpolicy/p/Fair_Tax.htm
It would be interesting to see one of us looked at our debt card statements over an entire year and estimate the amount paid for non-food and non-health items. Then add on the consumption tax rate to see how much that would be in tax to the federal government compared to what we paid in income tax. Would they be about the same for well off vs the less well off? They might. It will also likely show that those that have more pay more into the system because they spend more. A group of normal people should do this experiment.
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