Wednesday, April 18, 2007

The Alternative Minimum Tax gap and what to do about it.

Allan Sloan (http://www.pbs.org/now/shows/315/index.html#sloan)
was on NOW recently, and asked this question: "what would you replace
the AMT with?" in reference to doing away with this tax. The problem is
it generates to much revenue, and will generate more as the years roll
by. The answer to the solution is, however, staring us right in the
face.






Gangs are becoming a more and more deadly problem - just a few
weeks ago, two officers here in Charlotte NC were gunned down in some
type of gang related revenge or trial by ritual. And we are attracting,
now, a lot of the big national gangs; they come to the growing urban
centers of NC because they know that sales are on the rise.






Gangs in modern America are for the most part drug retailers. In almost
all cases, especially the larger nationwide gangs, drug distribution is
the whole business at hand. Other crimes are taken by individual
members of the organizations for various reasons, but as organizational
structures they serve one purpose, which gives them enough cash to
thrive and recruit new members.







We spend a huge amount of time and resources fighting the drug war, which by any measure is as it always was, an utter failure.






I know that it is a hard idea, but the tax gap could be set right
through the legalization of all major illegal drugs, put into
classifications (like beer and alcohol), and distributed through
existing or new avenues. In NC, you cannot buy hard liquor except
through what are called ABC stores, which are heavily regulated by the
state.






The savings in fighting the drug war, along with the huge tax
revenues that would be generated, should go a long way towards evening
things out. It would also have positive effects in the reduction of
gangs and therefore gang violence, and a legal economic opportunity to
those countries including Mexico which reside to our south, and which
have been adversely affected by our drug war.






That is also, of course, one of the drivers of why the people to
the south of us want to come here so badly. Corruption kills economic
growth, and Mexico and every other drug producing nation on earth,
including Afghanistan, has huge problems with corruption, and with the
gangs and paramilitary groups that make money and can stay in business
for only one reason - drugs are illegal, and it is that illegality
which forces the distribution into the hands of criminal gangs.







It would not be an easy battle, but sooner or later it will be a necessary battle - it is one that should be fought now.








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