Rather than exempting certain necessities from taxation it provides for a monthly payment to every legal household in Michigan in the amount of what the tax would be on expenditures up to the poverty level.  

So not only do we continue having the same problem that we have on the national level with people paying nothing into the system but getting something back, but we will need to create a new bureaucracy to cut welfare checks to everyone in Michigan.

People not paying into the system is part of the problem we have with entitlements. And if you want to see how well that will work out in the near future with more and more people on the public dole, I direct your attention over to across the pond.

Beck did a program several weeks back with Dr. Art Laffler, former Reagan economic adviser, that addressed the taxation problem on the national level. The problem in a nutshell isn't a lack of taxes, but a lack of revenue. To address this problem, his solution would be to have a flat tax for business and individuals that encompasses everything.

BECK: So what could we -- I'm getting a wrap sign. What could we get a flat tax down to and actually survive, that would be something shocking to the rest of the world to spit us out of this?

LAFFER: Eleven percent on business net sales and 11 percent on personal unadjusted gross income and we would match the total revenues we collect today with no Laffer Curve at that, Glenn. We would match the total revenue...

BECK: Where does that start?

LAFFER: That starts at zero.

(CROSSTALK)

Yes. Everyone pays 11 percent across the board.

BECK: That's FICA. That's everything.

LAFFER: Everything.

BECK: That covers everything.

LAFFER: Capital gains, estate tax, FICA, Medicare, Medicaid and...

BECK: One tax?

LAFFER: One tax.

BECK: What did you make this year? What did you make this year? Deduct 11 percent.

LAFFER: That's it. And then, businesses do the same 11 percent on their value-added. So you have the two 11 percenters. And you can match all the -- Jerry Brown ran on this as a presidential candidate in 1992 and almost took Clinton out.

He ran -- the Democrats love this one -- Jerry Brown. Now, his number was 13 percent because he wanted to have a little bit of a surplus to pay off the debt.

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