Wouldn't it be great if we had a flat tax or just a much simpler tax system without all these deductions?

Answer 1

A flat income tax is out, without an exemption for those living below the poverty level, while a flat sales tax would, at minimum, need to leave food & medications untaxed to meet the absolute minimum of fairness for those living below the poverty level

These proposals, with the exemptions, would seem worth it if it guaranteed the rich & corporations would pay taxes at the same rate. However, there is still the huge loophole of government contracts to most of these same giant corporations which would wipe out THEIR tax burden & leave them with a net profit paid for by the rest of us. The other loophole is that Congress would still tinker with it, even if passed as a Constitutional Amendment, eventually erasing the benefits of a simplified tax structure. Remember that the Founding Fathers left a provision to amend the Constitution because they realized no humans could write a perfect document which could meet all conditions at all times. The first 10 Amendments addressed the immediate shortcomings of the original document.

Still, the Tax Codes could be greatly simplified under the current system if a 60% majority of Congress & the President found the political courage to do so. As we all know, it ain't gonna happen.

As for the Fair Tax, I have read the document, & it fails to address many important details. One of them is Social Security, which is not addressed specifically. Social Security & Medicare are, in reality premiums paid in advance, yet are called taxes. What happens to them under the Fair Tax proposal? It doesn't address it at all. It also includes a deduction system for low income people, removing some of the simplicity. And again, Congress will surely alter it as time passes.

Answer 2

Now you ARE talking subversion !!
The powers that be do not want flat tax--- it eliminates the dodges that the "fat cat" has paid out major money to secure for themselves-- simplifies the system to where the common person can see exactly what they're paying out (something that a lot of the government really doesn't want people to know)---and because of the lack of tax dodges for the wealthy -- actually brings in considerably more money at a much lower rate for the people in the middle brackets !!!

Sorry Morris (dude up top) but your belief that flat tax would increase the burden on the lower income levels is just plain trash and that is what the wealthiest people and the power brokers WANT you to believe because they need your support of the complex system that we have for them to continue to rape the public over how little of the tax burden that they actually DO pay which is very little at all (one year a study was done-- I think it was just a very few years ago--- where a college group did a random comparision of taxes paid--- within this study it was found that a janitor cleaning office spaces in New York City paid almost twice the amount in per centages of his wage in taxes than the dude that ran the largest office IN that building !!!-----WRONG---just plain WRONG !!!)

Answer 3

eleven% is an imaginary type, via fact many states have a 5 to 8 p.c. tax which does no longer even pay for the state budgets, you will discover eleven% is a type made as much as sound good. i've got considered calculations that would desire to positioned removal of all earnings taxes at a 40% sales tax. a minimum of they confirmed their artwork. you will desire to additionally notice that the human beings who declare this might nonetheless make inventory purchases exempt, as they're now. i've got consistently found it humorous that buying a motor vehicle includes ales tax, yet no longer paying for area of a organization. eleven% is in simple terms an absurd type. Calculate what you pay in earnings tax, that share could be closer to certainty. this is all earlier you initiate figuring how most of the economic device could be a black economic device, like Sweden's or the Netherlands. Now think of how intrusive the government might desire to be to certainly assemble one in all those tax. I take it you have on no account run a employer, as anyone who has run one is super-unfold with which you spend a great deal of time making specific the money would not disappear. each franchise concerns that the community vendors are robbing it, each boss would desire to hardship that his workers are robbing him. Now think of the quantity of paperwork and hardship the state might desire to wade via to be certain how lots certainly employer became executed. basic sufficient in case you sell some thing you could count type. impossible to calculate while you are the third of the economic device that sells provider. Is the government going to count type soda cups like a McDonald's to be certain it gets paid on each soda? How does it count type hotel rooms bought or haircuts given? Throw out the IRS and day after today might initiate a miles less useful paperwork attempting to do the comparable artwork.

Answer 4

No because it would be a windfall for the rich. Right now the poor and lower incomes pay little or no taxes. The richer pay a larger percentage and thats the way it should be. A flat tax would hurt us lower income alot.

Answer 5

Oh yes! Scrap all taxes (particularly income tax and land tax) and just have a GST that is a flat 10% on everything you buy. How do they come up with these complicated taxation systems?

Answer 6

Yes, and it is called the fair tax.