Do you think a flat tax would be better than the current federal tax system in the United States?

Question

I think that a flat tax system for individuals would be more efficient and fair. All foodstuffs, electricity, gas, and medicines would not be taxed. Massive reductions in the IRS payroll could be applied to national debt. The remaining IRS agents would be assigned to monitor corporate america to ensure compliance with tax laws.

Essentially what I am talking about is a national sales tax on all goods and commodities not listed above (foods, gas, electricity, & medicine). Please explain to me in detail how this would/would not be fair?

Answer 1

the sales/excise tax is very fair, and has been highly touted by several great political minds in the past several years, however it isnt a flat tax. A flat tax is a preset rate at which all income earners are taxed. The flat tax isnt fair but a true income/excise tax supplemented with importation tariffs is extremely fair (IMHO)

Answer 2

This is why I voted for Ross Perot the second time he ran. I was ticked off at my boy Clinton for renting out the Lincoln Room and for not making good on his '96 promises to clean up PAC money. So I voted for the little guy who was a big proponent of the Flat Tax.

In my mind the Flat Tax is a fair Tax. Every American, no matter what you make pays their 15%. No shelters, no loopholes, nothing. You pay 15% and we are done baby.

The only reason I think it doesn't pass, is because 15% without tax shelters may be a big hit for some rich folks and of course there are whole industries built around our current, screwed-up system.

Answer 3

I believe a flat tax would be fair if:

- It applies to all people, businesses, organizations (including churches)
- It has NO exemptions, deductions, or credits of ANY kind. This means no charitable contrubution deductions, no mortgage interest, no energy credits, etc.)
- Offsetting support for the low-income CITIZENS would come in a separate program. Let's let EVERYONE feel that they do deserve to be heard; they pay their taxes!

Someone mentioned a consumption tax. The biggest problem I have with this is that it either has to be a selective tax or it will inordinately hit the low-income group. We all have to buy the basics and this tax would be a much larger percentage of the low earners income than the rich.

Answer 4

The problem with relying on a national sales tax for all governmental income is that it would have to be very high. Right now the US government grabs about 20% of our economy in taxes. So to replicate that as a sales tax, we'd have to have a 20% sales tax on EVERYTHING. If you want to exempt some categories, then it only gets higher. And this would have to be in addition to the state and local sales taxes already in place. I guess it could be fair, but it'd be an enourmous increase in prices, especially with the exemptions you listed.

Answer 5

Not to be rude, but you must be a Republcan. In no way would this be fair. Fair means people pay a rate in conjunction with how much they earn or in your example how much they spend. The last thing you want to do is hurt the lower and middle class who are already being squeezed from current tax laws, because of the tax breaks which essentially only apply to wealthy people. It would not be fair because a blanket tax means all people pay the same. This would work in communism or in a government which sought to only promote it's wealthy citizens.

Answer 6

In the year 2000 Steve Forbes ran for President and one of the main things he was pushing for in his campaign was a flax tax. Acoording to Steve Forbes, it is beneficial and fair.

"Tax on income is the price you pay for working. Tax on profits is the price you pay for being successful.”

Why is it fair?

"It reduces tax rates for everyone, which is critical if you remember that a tax is a price . I designed this so that everyone receives a tax cut, which avoids the sterile debates about who's helped by it and who's hurt. The fact is, everyone is helped. Essentially, it provides simplicity, as well as lower rates, which means more incentives. And there's no tax on savings, which is great for investment in capital creation and job creations. The income tax rate is 17 percent, and it doesn't apply until after generous deductions for adults and children. For example, a family of four would pay no federal income tax on its first $46,000 of income. If you have four kids, it's $65,000 tax-free. And there's no death tax."

Can your flat tax fund the national debt at its current level?

"Easily. Not only is the economy more prosperous, but your balance sheet becomes healthier. Your assets are worth more"

Answer 7

A flat tax is definitely the fairest way to tax the populace, there would still be the need to tax businesses though for other reasons that is where the Gov't gets 90% of it's revenue.

Answer 8

i assume you help the Forbes tax. i think of it truly is plenty extra effective than what we now have. individuals do no longer understand how plenty it costs us to conform with the tax device. I help the honest Tax because of the fact it eliminates all taxes on hard artwork and earnings. it would carry production back to the U. S. in super numbers. The honest Tax might additionally weigh down the Communist Chineese economically and hence harm Russia, Iran, North Korea. we are in a position to do severe harm to our enemies economically by using having the honest Tax

Answer 9

A flat tax is a great idea. While we are at it, besides the flat tax, eliminate all of the tax loopholes for the rich and big corporations.

Answer 10

I heartly agree. IF you either eliminate FICA, or remove the cap so there is no limit. Otherwise FICA remains a regressive tax on the poorest citizens.