How about a flat tax with a bottom cutoff, no tax forms to fill as it automatically takes the money?

Question

Family of four at 24k or less pays no federal income tax and receives no credits. They still have local taxes and sales tax.

Answer 1

bostonianinmo is confused. The EITC would not exist in a FLAT tax. People with multiple income sources would make forms necessary though. Bill gates would pay MORE under a flat tax and bostonianinmo would pay less. (I know he won't believe that.) I prefer the "Fair Tax" which repeals the 16th amendment and replaces the income tax with a national sales tax.

Answer 2

What you're suggesting has been advocated by republicans for the last 40 years. We've had tax rates as high as 75-90%, and republicans have been gradually reducing them.

Reagan was the first. With his tax reform, the highest tax brackets were reduced to no higher than 38%.

Bush did the same thing by reducing ALL tax brackets across the board, reducing the highest to 35% and changing the lowest tax bracket from 10% to 8%. (He did the same thing with taxes on capital gains.)

This is surprising to me. Your questions in the past have been decidedly left wing, and now you're pushing for a reduction on the far right!

Answer 3

How do you get around the guy who has 3 jobs? Now you need forms! And tax returns! You'll also need them for the EITC. And what about the family of 2 or 3. Oops! Need forms and tax returns for them too!

Flat tax is fine for the rich. If you're Bill Gates you'll pay a LOT less. But if you're a middle-income wage earner making between about $40k and $125k your tax burden will double or triple.

Answer 4

Flat tax on what exactly. Gross income with no deductions at all? What about business expenses? Home mortgage? Charities? No way Jose.