Would you be in favor of a FLAT TAX or a National Sales Tax instead of our current income tax?

Question

Our current system of taxation is not fair.
A VERY small percentage of people pay over 50% of the Nation's taxes.
A flat tax for everyone or a National sales tax would be more FAIR.
What are your thoughts?

One of my pet peeves in life is unfair taxation.

Tofu - I am NOT wealthy but we have a 6 figure tax bill - NOT FAIR!
We are probably upper middle class if you HAD to define us.

Answer 1

NATIONAL SALES TAX. EVERY ONE WOULD PAY. ALSO LETS MOVE ELECTION DAY TO APRIL 16 OR THE FIRST BUSINESS DAY AFTER THE INCOME TAXES ARE FILED THEN LET'S SEE IF TAX & SPEND DEMOCRATS CAN GET ELECTED.

Answer 2

A national sales tax probably makes more sense since it would hit everyone equally. On the other hand, a flat tax of around 14% - which seems to be the usual figure tossed about - would probably be loaded with loopholes and you'd still have people paying little or no taxes. And, a flat tax could conceivably cause some hardships for those in the lower income brackets. A sales tax on the other hand would have no escape valves, no loopholes and would be the same for everyone. The only exemptions would be for food and drugs - everything else would be taxed. People wouldn't mind paying their share if they knew everyone was paying equally. The way things are now, all people are created equal only some are more equal than others (George Orwell) and a sales tax would insure no one is more equal.

Answer 3

A flat tax or national sales tax would indeed be fair as long as it was implemented correctly.

A pure flat tax has issues, but there are various forms of flat taxes that have even been implemented in modern day countries.

http://en.wikipedia.org/wiki/Flat_tax

From the link, it has to be done correctly or you get an imbalance.

Personally, I like the idea of the negative tax. Unfortunately, a large number of people would end up trying to game the system.

~X~

Answer 4

A little lesson in economics
money tends to gravitate toward the top
that is why the progressive tax system
simple reasoning
2 people, 1 making 10k the other 100k each pay 10%
the 1k that the one making 10k pays is a larger hardship then the 10K that the other pays
A national sales tax system seems like it would be more fair...BUT
politicians often use tax incentives as a reason to get people to do things
this option would no longer be there

Answer 5

I support a use tax. The more you use, the more you pay. If you want to drive cars that are irresponsible, if you want to contribute to higher pollution, if you have children, whatever...you use more, you pay more. I agree on unfair taxation...and I believe that corporate welfare and tax benefits for being married or having children is unfair. Also, it would be nice if they decided taxes on a percentage. Everyone pays the same percentage of income. No more tax breaks for the rich! Reduce the burden on the middle class! That would be fair as well

Answer 6

National Sales Tax (or Value Added Tax) is the only constitutionally legal way to tax the general public. They say it discriminates against the poor... let them shop at yard sales where there is no tax.

A flat tax can also work but it is a direct tax and unconstitutional. Since the Russian revolution in 1918, there has been a 2 step income tax in the U.S.S.R., 10% (poor man) and 16% (rich man)... no if's and's but's or deductions. It worked quite well (untill they tried to keep up with U.S. military spending).

Answer 7

At this time I do not favor either, it is apparent to me that the rich pay more taxes because they can. I am not sure either tax would be fair to the rich or the poor, while I do agree that the present taxation plan is unfair to everybody I am not sure that I trust the politicians to come up with a plan to make any reasonable decision as to what is fair as most if not all politicians are rich.

Answer 8

No "Flat Tax"... It's an oxymoron... wouldn't last 10 minutes before "exceptions" would be added.
Go for the National Sales Tax... Some pluses: *all* foreign goods sold here would be taxed. (they are not now) Conversely, our goods sold in other countries would not be taxed. (those 2 things alone are worth going for the NST... that keeps jobs in this country by keeping our goods competitive on the world market) The "underground" economy would be taxed (the spending on bling by drug dealers for example.)

Answer 9

I favor a progressive tax system rather than a flat tax. And a national sales tax is regressive (ie the poor pay a higher percentage of their income in taxes than the rich).

One of the major roles of our government is to protect our property. Poor and lower middle class people have almost no real property. Therefore it is entirely fair and just that the wealthy pay most of the taxes (they own the vast majority of the property).

Also we must remember that it is impossible to become wealthy without using the poor and middle class in some way. That is how our economic system works.

One of my pet peeves is rich people who complain about their taxes while driving $100,000 cars and living in million dollar mansions. Yeah, my heart really weeps for them.

PS: If you make enough money that you are paying over 100,000 in taxes, you aren't "upper middle class" you are rich. The vast majority of Americans earn less than you pay in taxes. Once again, I have absolutely no sympathy for you or your "tax burden"

Answer 10

Only if it is coordinated with other countries -- otherwise every cross-border transaction (income or spending) would be double-taxed without relief under any tax treaty.

That happened for ten years with estates taxed both in Canada and the USA (capital gains tax in Canada; estate duty in the USA) until a new Protocol to the estate and gift tax treaty was signed and ratified. It caused A LOT of hardship.

Answer 11

What ought to we ought to communicate about if we went to a flat tax gadget. 1000's of tax specialists should be unemployed and particular flow on "welfair" (misspelling intentional).