What type of tax system you think would be better?

Question

A flat tax.....federal sales tax....or keep it the same.
Or is there a better way.
I believe the federal sales tax would be better because the wealthy tend to buy more costly items and would end up paying more.
And explain your reason for your answer.

Answer 1

Um, we currently have all three in effect!

Flat tax--If you earn more than $45K, you are subject potentially to something called the Alternative Minimum Tax (AMT), which is essentially a flat tax. Mortgage interest is about the only thing not in AMT. Depending on your income, you get an "exempt" amount and everything above that is subject to either a flat 26% or 28% tax (depending on total income). (So it's kinda flat).

As for me, a tax advisor, I'll be in business no matter which is used! If there's a national sales tax, SOMEBODY has to calculate it and make sure it's sent in properly! Same with flat tax and progressive taxes.

Besides, there's not just these 3 tax system in the US...we've got consumption and excise taxes (on gas, cigarettes, alcohol), property taxes, and various other taxes.

REMEMBER: The current income tax system got to be so convoluted NOT because we wanted it that way, rather each deduction or credit is a POLITICAL response to a group, individual, or idea that is motivated by a monetary savings. You get a mortgage interest deduction because the housing industry thought they could sell more homes if interest was deductible!

"Taxes are the price we pay for a civilized society" -- Justice Oliver Wendel Holmes

The WealthBuilder
Tax Specialist

Answer 2

A flat tax would be the perfect solution in a perfect situation. The problem is---- the government has all these facilities and employees in place to facilitate the current taxing situation. If the government were to shift to a flat tax system it would send thousands of people to unemployment. We would need to figure out a way to go "cold turkey" so that it wouldn't send the economy into an upheaval doing it. That would be the answer of the millennium.

Answer 3

I agree with a federal sales tax because everyone would pay tax on everything they purchased. No other taxes period. The purchasing power of the consumer would triple. Not to mention the saving and investing power.
One system of taxation instead of the many programs currently used... one sales tax report - no tax on basic food -
The employees of the IRS and all other tax agencies would switch to a new federal system.

Answer 4

Unfortunately, a national sales tax would create a HUGE black market and decimate the economy.

The major advocates of a flat tax are the rich. Under every scenario, their taxes would go down. The poor and middle class would get soaked.

The current US tax system could be improved but it is still one of the best in the world

Answer 5

A sales tax. There would be no filing. No audits. You wouldn't be required to keep records. You would have financial privacy. No government parasite snooping into your personal affairs.

Answer 6

yes flat because i cant go any higher im already paying 35 percent