Thomas J. Cryan joins us to discuss his new book Disrupting Taxes. He highlights how tariffs historically served as the primary source of U.S. federal revenue until the Civil War, after which income taxes took over. He criticizes the current tax system for its heavy reliance on individual salaries and argued for a more efficient, technology-driven approach. We also touch on the national debt, the need for a balanced budget, and concerns about government spending. Thomas advocates for a system that automatically adjusts tax rates to match expenditures.
We discuss...
- Thomas J. Cryan shares his background as a writer, attorney, and entrepreneur with a focus on law and economics.
- Cryan discusses his book Disrupting Taxes, inspired by the upcoming expiration of the Tax Cuts and Jobs Act in 2025.
- The conversation shifts to the historical role of tariffs, particularly how they funded the U.S. government for its first 70 years.
- The current tax system disproportionately burdens individuals, with 90% of federal revenue coming from salaries and income.
- Cryan critiques the self-declaratory nature of income tax, arguing it leads to inefficiencies and inequities.
- He proposes a 1% automated banking transaction tax to replace income tax and eliminate the IRS.
- This system would tax all banking transactions equally, spreading the burden more fairly across the economy.
- A proposed tax system would implement a flat 2% transaction tax, significantly lower than current income tax rates.
- Government transactions would also be taxed, eliminating loopholes and ensuring transparency in spending versus tax collection.
- While the system removes the IRS in its current form, some technological oversight would still be needed for enforcement.
- Low tax rates could discourage avoidance, as the effort to evade 1% taxation may not be worth the hassle.
- The U.S. tax system must consider global competition to remain economically viable.
- Tariffs can be an economic tool but may create global trade imbalances and diplomatic tensions.
- A technology-driven transaction tax system could increase efficiency and fairness over time.
- Free market principles suggest that supply and demand will eventually create equilibrium despite policy shifts.
- State and local governments operate under different tax systems, creating challenges in integrating federal tax changes.
- Broadening the tax base at all levels could lead to lower rates and a fairer system overall.
- States with high income taxes may consider adopting transaction-based taxation models.
For more information, visit the show notes at https://moneytreepodcast.com/disrupting-taxes-thomas-j-cryan-690
Today's Panelists:
Follow on Facebook: https://www.facebook.com/moneytreepodcast
Follow LinkedIn: https://www.linkedin.com/showcase/money-tree-investing-podcast
Follow on Twitter/X: https://x.com/MTIPodcast