Lawrence A. Hunter

Our current federal tax system fails to raise the necessary revenue to fund government in an efficient manner, and in a way that accurately prices the cost of government so that voters can make intelligent decisions. The President’s tax reform commission should establish neutrality, visibility, fairness and simplicity as criteria for a reformed tax code that will improve the economy and promote better government.

Escalating federal spending presents a real and present danger to the fiscal health of the nation. The solution to bringing congressional budgeting back under control is personal retirement accounts. They would provide a built-in mechanism to control federal spending, pay off the national debt, eliminate the long-run unfunded liability of Social Security, keep the trust funds perpetually solvent, and boost economic growth

Puerto Rico faces a daunting economic challenge at the beginning of the 21st century. The Mainland and Puerto Rico must enter into a new contract that rejects the failed policies of the past. Through the tax, regulatory and fiscal reforms proposed in this study, Puerto Rico can become a thriving international center of commerce and innovation, to the benefit of both the Island and the Mainland.

National debt is widely and falsely feared. Prudent use of debt can be a tool of national greatness. Using debt to overhaul the current tax code and transition Social Security into pre-funded private accounts would significantly enhance the nation’s economic well being. The misguided consensus to “pay down the debt” will inevitably result in surpluses squandered and missed opportunities for future generations.

Several state organizations are promoting a new, "simplified" state sales tax system in order to tax e-commerce. While the current moratorium doesn’t prohibit states from collecting taxes within their own borders, it does prohibit them from creating new and discriminatory taxes. The Founding Fathers wanted states to compete against each other, even in taxation. Extending or making the current moratorium permanent would coincide with the Founders’ principles of federalism.

It is important to grasp precisely what the proponents of the 1993 tax increase thought they were accomplishing, the logic behind their plan as well as what actually happened.

Ronald Reagan characterized politicians’ natural predisposition as, “if it moves, tax it; if it keeps moving, regulate it; and if it stops moving, subsidize it.” The Reagan dictum still holds, it seems, even if “it” moves in data packets at the speed of light. Today politicians at virtually every level of government are looking for ways to tax the Internet.

The December 1999 issue of IPI Insights. Special Education Issue. Articles by Lawrence Hunter, R.J. Smith, Dennis Avery. 800+ Kb

1998 was supposed to be the year when fiscal good times finally overflowed the U.S. Treasury and put money back into the pockets of ordinary Americans in the form of tax cuts. What happened?