fans of a flat tax?

Question

Fans of flat tax think that tax revenues can rise even when flat tax is lower than recent income tax rates. How could this happen and why?

Answer 1

To equal the current revenue that our graduated income tax raises, a flat tax would have to be levied at 27%. Only the ultra-rich would pay less tax. The middle class would see their tax bills nearly DOUBLE. The working poor, who currently pay little or no tax, would be devastated; many would be thrown into the streets.

If you're Bill Gates or Warren Buffett you'll get a nice fat tax break. If you're a $45k a year working stiff, your limited disposable income will vanish in a flash.

Answer 2

Simple math. Easy to determine if individuals are paying the right tax or not. No deductions. The no deductions is where you would really see and increase.

The biggest benefit... Dismantling the IRS! That division alone is sucking millions (maybe even billions) out of our government. It would also save our legislation a lot of time since they wouldn't have to come up with new laws, loop holes, breaks, etc.

Less is More! Making it simple and straight forward will ultimately mean its more efficient and lest costly.

I believe that all that energy put into taxes by lawyers, accountants, and politicians could be better spent else where. Its not just about the total revenue coming in but about the net gain.

Answer 3

A flat tax would mean no deductions or loopholes. You make a certain amount you get taxed a flat rate. Therefore a lower flat tax rate could potentially generate more revenue from taxes then our current rates and system.

Answer 4

I would agree that a flat tax on a person's income would be more fair that what we have now. Also that would eliminate all the loop holes that now available.
Also give back the President the right to the one line veto that would stop a lot of the pork barrel things that the congress does to cause our tax money to be used for political purposes.

Answer 5

I'm just guessing here...

With a flat tax (no deductions allowed), you can't use tax shelters to avoid paying taxes on income. Business decisions will be made a basis of "can it make a profit", rather than "what are the tax implications, and how can we get around them?". Givebacks like Earned Income Credit will disappear. If it's done right, there'll be no way to cheat or avoid reporting income.

Answer 6

I am no expert, but I like the idea of your income is 50,000 the tax is 15% you owe 7,500
If every one pays and there are no deductions it might work