Cons and Libs, Do either of you support a flat tax rate with no breaks or returns?

Question

Say a 10% tax on all revenues generated.

Just curious to see what each side thinks of a flat tax.

I would think that a 8%-10% flat tax wouldn't break anybody's back.

Considering they pay more than that now.

Or if you still prefer a graded system. It should be a flat graded system with no deductions or returns.

under 20K = 0%

20K-50K = 6%

50K -100K = 8%

and so on.

I just think off all the time and money wasted with our current IRS system and it seems silly and mismanged.

Answer 1

Works for me. We'd save a fortune on IRS costs alone.

Answer 2

Actually it may work. Certainly it is simple enough. Since everyone would pay a percentage such as ten percent or 2.5 percent those that make more will pay more those making less will pay less. Keep in mind, however if it is 10% and someone only makes 30K a year they will pay 3K in taxes. Do you think they could use the money for food or something? Yet a person who makes 30M a year would pay 30k in taxes but that still leaves enough for all the food, shelter, clothing and anything else they should want. Maybe a graduated flat tax. Those up to a certain level pay 2% perhaps up to 40 or 50K and then those 50K to 200K a slightly higher rate and so on with no deductions for anything no matter what leve.

Answer 3

It has been statistically proven that a flat tax would produce much more revenue than our current system. But there are two problems: First, from a percentage standpoint, the rich pay much less than the middle class. So a flat tax would force the wealthy to pay their fair share. Unfortunately, many of our lawmakers--both Democrat and Republican--are either wealthy or they hobnob with the affluent. Consequently, you'll never see a flat tax. Second, if we ever did implement one, we would need to include a provision to exempt low-income families.

Answer 4

Absolutely. I have been in favor of a flat tax since I first heard about it many years ago.

Every time it has come up in Congress it has been killed because of pressure from outside groups. I have never been able to understand why anyone would be against it except for the folks involved in writing the tax laws, those involved in figuring taxes, those lawyers who are involved in litigating tax laws. I guess that is a pretty big list and that is why flat tax is not the law of the land.

Answer 5

A flat tax wont work on ALL revenue, or for all tax payers. Someone making $10 million doesnt really miss $1 million in taxes. I imagine it SUCKS but they arent going to miss any meals on a paltry $9 Million. Someone making $5000 a year REALLY cant afford $500 in taxes.

I would say a flat tax on everything over $30,000 per person. You should be able to keep SOME of what you make.

Answer 6

Conservative. And yes. I think you should be taxed on what you buy, not on how much you make. I think a flat rate tax on new items purchased only is the fairest way for the government to collect taxes. That makes the taxes essentially optional (if you don't want to pay the tax, then don't buy it) instead of forced. I am about half way through reading Congressman John Linder's "The FairTax Book." Good read, great ideas.

Answer 7

It would have to be higher than 10%, probably 15-16%. We pay more than that now. But yes, it's a great idea, on income and business revenues. Establish realistic poverty levels, and everyone above that pays. No shelters. Outsourcing doesn't exempt a company's profits if their products are sold here. Plus, all those people employed to interpret our impossibly convoluted tax laws could be reassigned to auditing for compliance. Win/win.

Answer 8

I'm gonna go with no.. The rich already get too many breaks and perks living in this country through interests rates while the poor and middle class struggle paying this their entire life. The wealthy should have to pay much more in taxes to make up for the undeniable advantages they already recieve which seem to go unnoticed.. On top of that, we plain out can't afford such a thing right now..

Answer 9

A sales tax only for purchased goods, a flat tax is a great idea. Steve Forbes' idea of a flat tax should have gotten more attention. It was a great idea, but for whatever reason it faltered. Who knows maybe the idea would be discussed again. It's a great way for the government to collect tax money to keep our society rolling.

Answer 10

10% sounds a little high to me. Lets try for 1% and see if our fearless leaders can live with that. LOL

Actually, the average American still spends over 30% of their income in taxes. What we need to do is make our government more fiscally responsible first. But that's kind of like teaching a pig to fly.

Answer 11

Too many details missing.

Is the tax on ALL money, including interest and dividend income?
Are you including social security/medicaid?

BTW, most flat tax estimates I've seen point to a much higher amount than 10% in order to generate the same revenue as now.