Just found a new tax system that I found very interesting.
The Neutral Tax, is where we end all taxes by the federal government. All taxes would come from each state. All decisions on taxation are made by the states and then the federal government gets a fixed, flat share of the resulting revenue. This puts the states in the drivers seat in setting tax policy. Each state will pay to the federal government a share of taxes collected at the state and local level.
This enables the states to compete, for residents and companies based on tax policy. The Neutral Tax enables us to stop bickering about tax policy at the federal level and start competing on tax policy at the state level. It takes power away from the federal government, but revenue would stay the same.
The general idea is that each state can set their own tax policy and we can allow people to have a better control on the tax policy they want to live under.
