The Busler Single Rate Tax Plan Ensures All Americans Pay Their “Fair Share”

A 15% single-rate tax on all income above a liveable minimum, is an optimum plan.

President Biden wants to finance his huge spending plans by raising taxes mostly on the highest income earners. He argues he wants the wealthy to pay their “fair share.” He has never defined exactly what their “fair share” would be. In theory, though, most Americans would probably agree that all income earners should pay their fair share.

Biden’s proposal would end up over-taxing the wealthy. While he does not seem to be concerned about that, over-taxing the wealthy really hurts hard working Americans. The reason is simple.

The US economy is capital intensive. There are two basic inputs into the economy: labor and capital. For the past 50 years, our economy has been switching from labor intensive to capital intensive. Years ago, manufacturing was done with numerous workers on an assembly line.

Modern manufacturing is done with numerous robots on the assembly line and few workers. Companies need capital to purchase the robots. Even in the service sector, each worker’s productivity has greatly increased because of the technology they use. The technology needs to be purchased with capital.