Changing from Hidden to Transparent Taxes: Develop a Plan For How to Change From a Hidden to a Transparent Taxing System

I believe it is important for elected law makers to first seek to obtain input from those who elected them to determine what hidden taxes the people would want to have ended first.  My belief is that people will most often choose to end the hidden taxes that are easiest for them to see and which would help them to experience the benefits of quicker.


Plan what Hidden Taxes to end and when.

Earlier in this series, I have spoken of the potential benefits of ending property taxes early on.  Home owners and renters would both experience an immediate savings that could result in increased consumer spending.

Our Federal government, along with some states, have an income tax that is applied both to employees and to business.  While it would not be easy to end such a long running form of hidden tax in favor of a transparent tax, doing so would help to bring about a potentially significant reduction in the prices that stores charge their customers.

Business would no longer be passing the cost of the income taxes they pay to government onto their customers, and employees would get an effective pay raise.  And with people’s normal habit of spending most of the money they get, the new higher take-home pay associated with ending this hidden tax (which is perhaps the most well-known of all hidden taxes) would also produce new consumer spending.

Include Windfall Profits tax to encourage consumer friendly price adjustments.

I believe it will be important to include provisions for a windfall profits tax to be assessed in cases where businesses and landlords do not pass on the savings that occurs as a result of a hidden tax being ended.

For example, a landlord who no longer has to pay a property tax should lower the monthly rent charged to tenants by the amount of the property tax no longer being paid.  If not, a windfall profits tax would be assessed that effectively sees to it that there is no financial gain on the part of the landlord who “tried to cheat.”

Legislators, and other elected law makers need to make the change effective and simple.

Perhaps one of the best ways to keep the process of the change from hidden taxes to transparent taxes both effective and simple is to end each hidden tax gradually, on a pre-determined schedule.

With it being human nature to be resistant to change, then making this kind of change gradually, will make it easier for people to see how they will benefit as a result of the change.  Changes which will be seen as benefitting the neediest members of society should be the first to be ended.

Whatever plan is put together, public input is a must so as to determine what kind of plan the largest percent of people will support.

Make sure drafted legislation covers all that is needed.

The process of ending one form of taxes and beginning another will involve detail, planning, and a certain amount of logistics.  It is important therefore, while engaged in the discussions that result in the legislation to bring about these changes that all needed areas of concern be addressed.

Such as, where, when, or if a windfall profits tax is to be assessed, and how much.  Or how to make sure the various special interest groups that have potentially powerful lobbies are given consideration without giving them the kind of special treatment that is going to be harmful to the most number of people in the long run.

Avoid contaminating the legislation with unrelated “other items.”

This kind of legislation is bound to be filled with details necessary to end various hidden taxes in favor of transparent taxes.  It would be tempting, therefore, for “political bargaining” to be attempted as a way of obtaining special favors in exchange for supporting votes.  News stories of “ear marks” have happened in the past as part of political bargaining.

My suggestion is to keep this legislation clean.  Meaning, do not attach any of the “and other items” stuff that seems to be commonly used to get stuff passed that has nothing to do with the title of the legislation.
Thank you for taking time to read and ponder my opinion on this topic.
An Opinion Article by Dave Kemper
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It has been said that: "One definition of insanity is to do the same thing, the same way, over and over and over again, each time expecting to achieve a different result."
Therefore, we must either CHANGE the way we live, or we bind our future to our past as if with CHAINS.
"I do not consider myself to be better than anyone else.  But I do believe in exercising my right to not stay stupid."

David W. Kemper, Author
© Copyright 2014 by David William Kemper.  All right reserved
No part or portion of this publication may be modified in any manner without the express written permission of the author.  Quoting from this publication is allowed on condition that the name of the author and the name of the publication are included.