Anyone like the flat tax idea?

Answer 1

Absolutely! The flatter and closer to zero the better.

Answer 2

The flat tax idea is a great idea. It is supported by left winger Jerry Brown and right winger Ronald Reagan. The fact that it is supported by such a wide range of the some of the best politicians from such a wide range of the political spectrum should be enough to win overall support.

The flat tax will never pass; Democrats want you to believe that progressive taxation (soaking the rich) is the key to ending poverty and fattening the government coffers. However not even the most naive believe that the rich pay the same rate of taxation as the rest of us. Bill Gates has an army of accountants and tax lawyers to lower his rates (do not blame him) Most cops, teachers and plumbers do not have those resources

The flat tax would provide an actual level playing field and all but abolish the IRS. But there are to many people that make money off of the current system.

I do not know how that the flat tax would affect business, but in reality businesses do not pay taxes anyway, their customers do.

Answer 3

The notion of a flat tax does have a certain simplistic, egalitarian appeal. But it has three main flaws: 1) It seeks to improve something that is already completely equal; 2) It forces middle-class taxpayers to subsidize the wealthy (especially those incarnations such as Forbes' that exempt "unearned" income such as the interest on his invested inheritance, so that working people would support the idle rich); and, 3) It confuses much-needed tax reform and tax simplification in defining taxable income with the unrelated issue of whether the rate applied to that income is flat or graduated. Anyone who wants to support a flat tax better run the numbers first and see how much more they're going to pay!

The Graduated Progressive Tax is FAIR
A lot of people don't understand graduated taxes. They think if you make more money you pay a higher rate on your entire earnings, which seems unfair. Graduated progressive taxes are FAIR for three reasons: 1) they treat all taxpayers exactly the same; 2) they treat dollars with appropriate difference based on differing levels of marginal utility; and 3) those who receive the most benefit should pay for the disproportionate benefit derived from the system.

Answer 4

I agree with riven3187, The Fair Tax is a much better option.

1) The working poor pay zero net tax, and the jobless actually receive a subsidy!

2) The tax is a sales tax on NEW merchandise, plus services. USED merchandise is not taxed, so this will encourage people to recycle and repair things rather than throw them away.

3) Because it's a sales tax, pimps and pushers have to pay taxes, just like honest people.

Answer 5

No, it tends to favor the rich. The reason a progressive tax is good is in that the poorer don't get overtaxed too much and have no money, while the rich have a higher tax rate and will contribute more money to the government. They would have to raise the tax rate above the lower-income tax rate if they instituted and flat tax rate. The poor would have less money at their disposal and the rich would likely have more money in their pockets.

Answer 6

A Definate YES! No loopholes for the rich, and everyone is taxed the same. Even better is a consumption or sales tax, where you only get taxed on what you spend. Savings is immune, and the rich who buy real expensive stuff pay more!

Answer 7

I think it's a good idea...but...when you look at our system it makes sense. It encourages real estate ownership, charitable giving, adoption, and many other good things. Unfortuantely, it also leads to loopholes and corruption. Many wealthy people take advantage of the system and end up paying a smaller percentage of their income in taxes than the average American worker...which a flat tax would remedy.

Answer 8

NO. In a simplified way, I will try to explain my answer:

Let's say the proposed fedearal rate is 10% of income. A household with $1,000,000.00 in taxable earnings would pay $100,000.00 in taxes, leaving them with $900,000.00. A household with $60,000.00 in taxable earnings would pay $6,000.00, leaving them with $54,000.00. As you can see, the amounts are disparate as the higher wage earner is still left with more disposable income. The higher wage earner also probably has more diversified investment choices which could be used as various tax shelters further decreasing his taxable earning amount. The $60,000.00 wage earner does not have much left after spending on housing, food, fuel, etc.

Answer 9

no, a flat tax is not the best use of resources. a progressive tax structure (like ours) is the most beneficial for society. check out how much it sucks in mexico if you want an example.
http://ideas.repec.org/p/ays/ispwps/paper0112.html

Answer 10

I like Fair Tax. Neil Boortz is the man.

Answer 11

I think everyone should pay 10% across the board....even the rich folks and they should not get so many tax breaks.