One problem would arise from the simplification of taxes outlined in my Tax Reform essay.  Today we have a progressive tax rate.  That is, the more you earn, the higher tax rate you pay.  This is a product of civilized social development, and I am in favor of the concept myself.  The idea is that low-income people should pay a lower percentage tax than high income people.  Let me use an example.  Let's say there exists a tax rate of 10%.  The person that only makes $10,000 a year will have to pay $1,000; while the person that earns $1,000,000 a year will have to pay $100,000.  Those that object to a progressive tax rate say that it is unfair to successful people, they are already paying way more in taxes just because they make more.  The civilized rebuttal is not to look at the tax one pays, but the remainder.  The low income person would be left with $9,000 and the wealthy example would be left with $900,000.  I do not consider $900,000 a hardship.  If you had a 1:50 progressive tax rate these people would be left with $9,900 and $500,000 respectively.  It is my opinion that the person left with $500,000 will still be "rich" and the person left with $9,900 will still be poor.  To the rich person with $500,000, a $100 fee to file some government form is easily absorbed, but to the "poor" person with only $9,900 is it a huge sum that may make the difference about whether they eat properly or get by with only Ramen Noodles.

My solution would be to leave the sales tax as a flat percentage for all, since it it easy to implement.  However, if we could rework social programs aimed at low-income citizens at the same time as we implement the tax change it would work well.

A certain percentage of the tax collected (no need to calculate that figure here) would go to provide housing for all homeless people.  It would provide only the basic needs to survive.  It would not involve a community center with a pool, it would not provide television or any other entertainment that we normally associate with "home."  It would merely be shelter from the elements, a place to sleep, and indoor plumbing.  I propose that we make it very easy to use such facilities.  There should be no "waiting period" or application.  It should even be open to people not indigent, but of other desperate need...say a woman is leaving an abusive husband.  If she is of sufficient fiduciary means, she will move out of her own volition soon anyway.  There is no need to limit terms or dictate who or who couldn't use free socially provided housing.  We need not ask WHY a person has come to a free-housing center.  It is enough that they have brought themselves here.  There is a general assumption that by securing gainful employment one could live a better life and provide themselves with accommodations that offer better amenities.  In addition to helping the needy, the well-off people would enjoy a better life because they would no longer have to "put up with bums living under a bridge."

A certain percentage of the tax collected should also provide to feed the poor.  And just like with free basic housing, if we don't attempt to limit who has access, there will be no cheating.  It's not cheating when everyone can have it.  Consider a system like a soup kitchen.  The menu need not be varied, it need not cater to every palette.  The intention is to feed people without the means to feed themselves.  It is what keeps them from dying of starvation.  If the millionaire wants to eat government-prepared vegetable soup, let them.  The free market will dictate how many people use the service and the tax rate will be adjusted accordingly.  If the will of the people is a socialized food system, so be it; but I don't think that will happen in reality.  Remember, this is not food stamps, or money to go buy food.  It is the actual BASIC food.  And neither will it be an appealing choice to anything but starvation.  We need not "salt to taste."  This must be viewed as an alternative to starving...like picking berries if you're lost in the woods.  At least the 4 food groups should be offered in case someone has a health concern with one type of food, for example you may be allergic to fish, then just eat the bread.  No attempt will be made to fill the gap with something else.

Likewise we should clothe the indigent.  There are already many institutions in place that recycle used clothing.  There is no reason we cannot sustain this industry on donations alone.

Beyond food, clothing and shelter, I see no reason to burden taxpayers further.  We need not have a government-sponsored vocational education system (at least not beyond what the public schools offer, and that is a separate debate).  Private charities can pick up any slack the public deems necessary.

I admit society has a certain apprehension about social programs because of such wide-spread system cheating and FEAR of system cheating.  Ask 100 people what they think of the current Welfare system and see what percentage of people talk about how they don't want their tax dollar going to the woman that keeps popping out Welfare babies just so she can receive a larger check.  You probably will not get very many responses that talk about how wonderful it is that we help people in need.  To the naysayers that are against all form of social welfare, I say that it is CIVILIZED that we help others.  Do not reject all social programs just because you think SOME people are lazy, or SOME people cheat.  That is a great injustice to the majority of people that really do need help.  Since I believe all people aspire to improve their condition, I do not think people will WANT to make use of public facilities for an extended period.  The key here is that we do not hand out money, rather, the actual essential things needed to live.  That is, we would not give an unemployed person money to pay their mortgage, but we would give them a warm place to sleep if they were evicted from their home; we will not give him money to go grocery shopping, but we will give him a bowl of soup.

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