FLAT TAX

Yerusalyim

The Taxes Filed thread got me to thinking....what say we here in the US go to a Flat Tax....18% for those who make over $35,000 a year...no deductions. Hmmmmm?

Big Tex

What about abolishing the income tax (federal and state) and having a national sales tax? That way the rich and poor would be taxed in proportion to their purchasing power .

Yerusalyim

Actually, I wouldn't be oppossed to a National Sales tax in conjunction with the flat tax as long as it was only on luxury items. Any Sales tax would need to exempt food, etc.

Big Tex

>cautiously heading toward the deep end<

But wouldn't a national sales tax cover it? Why the need for a flat tax on top of that? It seems as if some type of sales tax would bring in all those not currently filing income tax as well as the rich who use the loopholes to escape their fair share.

>standing on tiptoes as the water comes up to my chin<

Shutterbug

Would this be a tax on all income over $35,000? I once knew this older fellow who had to work overtime for 30 minutes one week and received 50 cents less than he would have if he had not worked the overtime. So if a person makes $35,000 + $1.00 in a year would he be taxed 18% on the 35,000 or on the $1.00? People would be turning down raises because it would cost them money !!

Yerusalyim

Shutter,

Under the plans I looked at, a family of four that made $35,001 would have a tax bill of .18 cents.

The Sales Tax as sole source would penalize the poor a bit more than the rich...

Shutterbug

You know a flat tax really makes sense, which means it will never happen, if past sensible ideas are any indication. I disagree with Big Tex on the sales tax idea because of the negative impact on lower income folks. Clothing would cost an arm and a leg after you add on the federal tax to the already existing state sales tax.

Bug

Badger

Sales Taxes by definition are regressive...a greater portion of the poor's money goes to buying everyday needs. The weathier classes are able to invest and save a great deal more....thus a larger portion of their income would be tax free.

We have a progressive tax in this country because the wealthier are better able to pay. A tax system without deductions would hamper individual actions that are in the best interests of the nation.

Yerusalyim

We have a progressive tax in this country because the wealthier are better able to pay. A tax system without deductions would hamper individual actions that are in the best interests of the nation.

Actually, the "progressive" tax system penalize the succesful for their sucess. The only necessary deductions would be for yourself and your kids...a family of four would have deductions reaching about $35,000. Any further deductions would just get in the way. Without the "deductions" the rich wouldn't be hiding their money and would put it to work to earn more because they wouldn't be penalized for earning more.

1bigwhitedoggy

First post for me - just signed up. But this is a subject I have an opinion on...

Questions: 1. What defines a 'rich' person? 2. Why should they pay more tax than anyone else? Other than simply because they have the ability to pay. 3. Do the 'rich' use more public resources than regular people?

In the USA more than two thirds of the income tax revenue is paid by the top 10% of the income earners. So are the 'rich' not paying their share as well as lot more? Fully 96% of the tax bill is paid by the top 50% of earners which is anyone earning over 27,000 AGI in the year 2000. Personally I am in the top 5% of wage earners and my group pays 57% of the tax received.

I am tired of people thinking they have the right to take my hard earned money and re-allocate it to those who earn less.

I agree the system could be simplified.

With the Alternative Minimum Tax as well as other loop holes closed it is not possible for the rich to legally shelter all of their income and pay no taxes at all.

One other thing.... as a 'rich' person I create a lot of employment for others which adds to our economic base and increases tax revenue.

FLAT TAX

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