FDR Was Right About the Desperately Wrong Withholding Tax

The biggest flaw in Washington policy makers and economists is not understanding predictable human behavior. We are not robots, and robotic economic formulas that fail to account for human nature are meaningless.

The good and bad elements of how we think and then how we act based on what we think is what drives all economics, and it is why the understanding of history prepares us to make wise policy decisions.

Unfortunately, making wise policy decisions is difficult due to the very real fact that policy decisions are made by politicians, and as such the purity of these decisions is often corrupted by political self-interest at the expense of good policy. We know this because we know the human condition.

The most long running and nagging policy question in Washington that seems unfixable is the inability of our government to stop its truly grotesque spending habits. This can be explained by a simple acronym, “OPM.” Other People’s Money. My children don’t pay the light bill or the gas bill. That’s why they, despite my remonstrations, leave the lights on and the front door wide open when it is 19 degrees outside.

If you have read my previous articles, you likely are aware of my brilliant western civilization saving ideas. Here is one that the new Trump administration should employ, and while it won’t solve the overspending problem in Washington, it likely will put a sizeable dent in it. Eliminate the withholding tax.

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Americans for Fair Taxation® is a 501(c)(4) non-profit, non-partisan grassroots organization solely dedicated to replacing the current income tax system with a fair, simple and transparent national consumption tax – the FAIRtax® Plan. We rely entirely on contributions from concerned citizens like you who want a tax system that will generate jobs and stimulate the economy. Welcome to the FAIRtax team!

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