We’re coming down to the wire for presidential nominations. Election coverage is heating up and it seems like there’s a debate on television nearly every night. Despite all of the press, there are still a number of questions about where candidates stand on the issues.
In terms of what affects voters the most, I feel strongly that it’s important to understand what it is that each candidate hopes to bring to the table in terms of tax incentives, tax policy and tax proposals. With that in mind, I contacted each of the candidates who has officially declared an intention to run for president. To keep it simple, I asked each of the candidates the same six tax-related questions.
First up is Republican candidate Vern Wuensche. Here’s what Wuensche had to say:
taxgirl: What’s the single most important tax issue facing Americans today?
Wuensche: The fact that all rates are too high and that rates, deductions, and exemptions are used by those in public office to manipulate others so as to continue in office at the expense of taxpaying citizens. A particular damaging tax to all Americans is the high corporate income tax which makes us uncompetitive in world markets.
taxgirl: If you could only make one “quick fix” in terms of an extra credit, a disallowed deduction or the like, what would it be?
Wuensche: I can think of no quick fix in the form of a minor manipulation of the tax code. It must be eliminated entirely.
taxgirl: The current federal estate tax exemption is $5 million for individuals or $10 million for married couples. Do you recommend lowering the exemption, boosting the exemption, keeping it at its current rate or something else altogether?
Wuensche: The federal estate tax should be eliminated entirely. It is unfair to the deceased who had used after tax income throughout his working life to accumulate assets and now is taxed heavily at his death. It is unfair in that to pay the estate tax the taxpayer is often forced to sell assets in an untimely manner when their value may be at their lowest point. It is unfair to all Americans in that businesses which often have taken many generations to achieve an efficient production process are forced to be broken up to pay taxes and thereby lose this efficiency. It is unfair to all Americans in that our culture is harmed with the disruption caused by family farms requiring to be sold to pay the estate tax.
taxgirl: It has been suggested that the IRS should be eliminated. Do you believe that this makes sense, and if you do, what would you establish in its place?
Wuensche: The IRS should be eliminated entirely and replaced with a national sales tax. This would eliminate taxation of an activity that is REQUIRED to survive — an individual’s production of income — with taxation of an activity that is entirely VOLITIONAL — purchasing products. The Sixteen Amendment to the U. S. Constitution should be simultaneously repealed. The benefits would be numerous. Individual Americans would have more control of their lives. No longer would the production of income be penalized more and more as one became more and more efficient at producing it. One could accumulate capital more easily by simply foregoing purchases. Capital would be allocated more directly towards national economic benefit rather than to obtain tax benefits which may or may not be for the economic good as people would vote with their dollars on what is worthwhile rather than what the IRS dictated through the tax code. Capital would be more mobile and flexible as there would not be a penalty in moving it from one investment to another.
taxgirl: Do you think that significant tax cuts are possible considering the current state of the economy, specifically with respect to the issues surrounding the debt ceiling and the federal deficit?
Wuensche: Tax cuts are always possible and taxes should be reduced dramatically. Those who oppose them always use static analysis which assumes that a reduction in taxes will reduce revenue in an exact mathematical amount caused by the rate reduction. They make no allowance for the change in a taxpayer’s behavior as a result of the rate change. If taxes are reduced to zero with an eliminated IRS an individual would rise earlier and work harder and longer the same as any individual who is paid on a piece work basis where he is paid more for each piece. And the opposite will also be true: If one individual is taxed at a rate of 20% he will get up in the morning and go to work as he always has; if the same individual is taxed at 50% he likely often will not go to work at all; and if he is taxed at 100% he will ALWAYS stay in bed and never go to work. No tax revenue would result from the latter. The level of taxation changes a person’s behavior.
taxgirl: And just for fun, if Uncle Sam handed you a huge refund check right now, what would you do with it?
Wuesnche: Invest it in my campaign to spread the word that small business owners who have been in business ten years or so are the best PROVEN decision makers as in their case ONE major decision error at an earlier time would generally have put them out of business. They are required to be better decision makers because they are forced to and as such always make the best public officials.
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You can read more about Wuensche’s campaign here.
