What is the best tax system for the USA?

Question

I would like to see a flat tax for everyone, people, corporations,any taxable entity and no deduction or subsidies across the board. Lets say 10% just figure your income and pay 10% what do you think or what is your plan?

Answer 1

Two problems with that. First off, that would bring in alot less money than we are right now. Secondly, right now the bottom 30% of American households effectively pay no income tax (when you figure in the EIC) and would you increase their taxes under your system? If you don't your system will fall even more short in terms of meeting the budget.

There's about 100 million households in the USA averaging 50,000 dollars a year. So your tax, even if you taxed people in poverty, would only bring in 500 billion. Right now our budget is 2 trillion dollars a year. Taxing companies wouldn't bring in even another 500 billion. So your tax is too low. But if you made it higher, what about really really poor people?

A better solution would be a simple graduated tax with some simple deductions, not the very complicated system we have today. FYI, the Bush tax cuts and credits have basically doubled the tax code complexity while decreasing the percentage of our economy captured in taxes from 20% to 17%. Bad news all around.

Answer 2

rich people don't pay taxes......i have trouble getting people to believe me. take a super rich person like John Kerry...his home is in a corporation, his cars are in a corporation, who knows what else. sure the rich are in a high tax bracket but they shelter most of their income. the small percentage of the personal income they report is heavily taxed but they keep most of the gross income non-taxable.

i would be afraid a flat tax w/no exemptions would destroy the real estate market. that is where most middle class Americans have alot of their money.

i would rather see 6-8% tax on income up to $100,000 per year and raise taxes on all income over that amount.

i just purchased a home so i would be personally afraid of a flat tax but your flat tax idea would be a good system if some deductions were to stay in place.

my solution would be a broader tax cut for all people making under $100,000 per year. a 6-8% tax is enough for our fat-cat politicians to spend.

Answer 3

I myself like the flat tax where everybody pays the same percentage. I have a new job and it came with a good raise, but with the tax set as it is the more I make the more I pay. A flat tax would be consistant.

Answer 4

It tends to be more effective, easier to enforce and far more people end up paying far less.

And it brings in almost the same amount of money as the current system. Just eliminating the complexity of the tax code will save billions of dollars per year just by itself.

Answer 5

I think it would have to be a little higher than 10%, but I would like to see federal sales tax replace the income tax system, then we could dissolve the IRS and save a little money there.

Answer 6

I don't believe in taxes. Of course I don't believe in tariffs either,
and I'm not particularly fond of gambling (eg state lotteries) And I don't think the government should make all their money from taxing "bad" stuff (eg cigarettes) because then it would be in their best interest never to get rid of it...So the best way for the government to make(take) money I've come up with so far is bake sales and car washes.

But I'm still working on it!

Wish me luck,

Josh

Answer 7

The flat tax is the best because it'll get rid of the IRS.

Answer 8

I agree, flat tax

Answer 9

The flat tax - it's a no-brainer and is never gonna happen, unfortunately.

Answer 10

NO TO FLAT TAX!! It screws the poor!