Wouldn't a flat rate income tax be fair - so that everyone is contributing to the system?

Answer 1

A flat tax would probably benefit me financially personally, but NO I’m not in favor of it.

Middleclass probably won’t be real happy if a flat tax comes in and her taxes go UP, which they likely would if she’s truly middle class. And as for those credits she complains about for the “rich” – and many of the credits and deductions are phased out for high income people, and primarily benefit middle-class families with several kids, maybe with one or more in college.

And the low-income, and low-moderate income, people who now pay NO federal income tax would be hit hard – doesn’t sound real fair to me. And as soon as there are ANY exemptions, then we’re right back to needing a bureaucracy to administer and police it, and people looking for ways to cheat the system.

If this flat tax is based on income, then nothing changes with regard to “under the table” earnings – and anyone who doesn’t think there’s a lot of that, and not just with illegal aliens, needs to open their eyes and look around. If the flat tax is based on purchases, then the poor get hit almost whatever rebate system you put in place.

It’s fashionable to bash the rich over taxes, but people need to look at who it really paying the bulk of the income taxes before just swallowing these false ideas that the rich don’t pay them. Are there individuals who don’t pay much in any given year? I suppose so, but on the whole, it’s by far the high-income people paying the bulk of income taxes.

Answer 2

Any flat tax system that has been suggested has a fairly high standard deduction so that many people (generally those making less than $25K with a family) wouldn't pay any tax.

A flat tax would have just as many inequities as the current system. Also, remember that we use the tax system to encourage and discourage certain things such as discouraging smoking and encouraging home ownership. It would be just a matter of time before congress added just this type of thing to the flat tax making it not really flat.

One more thing, the idea that wealthy people don't pay their share is simply stupid. They certainly have deductions but the top 5% of earners pay approximately 50% of all individual taxes paid.

The same is true of corporations. As an example, Microsoft paid $5.66 billion in taxes on net income of $18.26 billion (that's 31%) for the fiscal year ended 2006. See for yourself at:

www.microsoft.com/msft/reports/ar06/flashversion/10k_fr_inc.html

Answer 3

I love the idea of a flat tax. The wealthier people are, the less chance that they pay anything close to their share(because they have so many choices for deductions and credits). Corporations often pay little as well. Enron paid no tax in 4 of 5 years studied-and even received millions back. That's a trick the rest of us can't do(getting a refund when we didn't pay in!)

Answer 4

The last flat tax proposal was for a 23% tax rate. Please pass this law I would love to pay 12% less per year.