Is A Simpler Tax a Better Tax?

John McCain, in his traditionally maverick role, used to be against tax cuts. Of course, that was before he got the memo that Republican nominees have to be against taxes all the time - at least until they get elected.

Today the AP reports that McCain actually has a decent idea - a federal gas tax holiday during the summer months. According to the article, the current gasoline tax is 18.4 cents for gasoline and 24.4 cents for diesel. With gasoline prices at nearly $3.48/gallon nationwide it's not much relief, but it could be if the states follow suit. If we pull out of Iraq and reduce the amount of oil the US Military is buying on the open market - then we might have something.

The AP article also mentioned a McCain proposal to give taxpayers an easier option to pay and file with a standard deduction. This idea I think is kinda stupid. The problem with taxes is that they are a) too high, and b) are wasted, prompting high taxes. It wouldn't take much convincing to gather acceptance for the option of more forms in return for lower taxes and/or higher refunds. Plus market solutions like CPAs, tax software, and tax prep offices take the burden of filing complicated forms off the tax payer for a small fee.

If McCain wants to help poor people, the gas tax holiday is a good start, but getting us out of Iraq and forgetting about ethanol would actually get the economy moving.