The Colvin Report: How Not To Rebuild the Economy

Well, I may not be an economist but I have a few views on things.

First, as discussed by my colleague, I believe the corporate tax should go the wayside and individual taxation should make up the difference in form of dividends and capital gains received from corporate investment, which should be taxed at the ordinary income tax rate.

The current preferential treatment really only helps the wealthy while the high taxes on corporations raise prices for consumers and lower wages for their employees. The average investor wouldn't be effected a great deal.

Second, I believe raising taxes on commodities and income alike is a bad decision. With the corporate restructuring, this wouldn't be necessary.

Mainly, I am dumbfounded by a recent proposition by Michigan's Democratic elect John Dingell to raise gas taxes by an additional 0.50 a gallon. I wouldn't expect this from the motor capital of the world and I wouldn't expect it at a time when gas prices are at an all time high. It is almost as ridiculous as carbon taxes.

You want to do something, get the SEC to step in and stop allowing the selling of gasoline on the futures market. The future market alone account for 20 or more dollars per barrel of gas. And I point out, these returns on investment are taxed at 15% while a median income family is paying over 25% of their income to the IRS with absolutely zero chance of taking advantage of preferential treatment.

Do I believe in ending foreign dependence on energy, of course, but taxing Americans is not going to have a long term effect on consumer habits. It is only going to make their lives a little harder. Right now, thats the last thing we need.

The IRS needs to be drastically restructured, but raising the highest tax bracket alone is not going to solve the problem.