should there be a flat tax tax on income,so everybody pays based off what they make.?

Answer 1

I think it would be great..but it won't happen because all of us have some deduction that we don't think should be eliminated..

Answer 2

The so-called Flat Tax is a ploy by the wealthy to transfer their tax burden to the shoulders of the middle class and working poor. Why do you think that folks like Steve Forbes like it so much?

For a flat tax to raise the revenue that the current graduated income tax raises would require a rate of around 25% - 27%. The wealthy pay a marginal rate of 35% so they'd see a nice fat tax cut. Steve Forbes, Bill Gates, and Warren Buffett would pocket MILLION$ on a flat tax.

Most middle-class working stiffs -- folks like you and me -- pay a total tax rate of between 10% and 20% of our total income. Pull out your tax return and compare the Total Tax line to the Total Income line -- and don't forget to add back any 401(k) contributions and your pre-tax medical insurance deductions -- and see what your total effective tax rate is. If you're like most folks, it will be a LOT less than 25%

Now, what would it do to the working poor? Let's have a look. Take a single parent supporting 2 kids on around $16k a year. They don't pay any tax at all and get about $4k in EITC payments. That makes for a little under $18.8k a year when SS and Medicare taxes are considered. They survive, but just barely. With a flat tax, the EITC would disappear and the tax bite would rocket to over $5,500 for them, including SS and Medicare. Take home pay would drop from from $18,800 to about $10,450. They'd be tossed into the streets by the millions. All so Steve, Bill, and Warren can have even more money than they could ever reasonably need.

The Flat Tax and the so-called "Fair Tax" -- a hugely expensive national sales tax -- both violate the first rule of taxation: Make sure that the taxpayer can afford to pay the tax. Our current graduated income tax does just that -- everyone pays their fair share and the poorest get an assist from those of us who are better off.

The impact of the "Fair Tax" on the working poor would be just as devastating as the Flat Tax since nearly every penny they earn goes to pay for essentials. The wealthy spend a far smaller portion of their total income and would get a major tax break.

Worse yet, the "Fair Tax" would require just as much work by the IRS to ensure that all sales were properly taxed and that the funds were rendered. Black marketing of untaxed goods would go through the roof. Look what is happening with tobacco and liquor in high-tax states right now. And we all know the type of element that black marketing attracts -- organized crime and gangs. Wouldn't THAT be nice, getting a TV or your Captain Crunch from the local gang-banger. No thanks!

Answer 3

It would give the wealthy a nice tax break, since on the average they now pay a much higher percentage than the middle class. And low income people would get the privilege of paying the same percentage as people making much more than they do, while now they pay little or no income tax - I'm sure they'd really appreciate that.

And the people cheating totally now by working "under the table" would continue to.

Hey, super idea!

Answer 4

There are two purposes that the tax code serves:

1) Raise money for the government

2) Influence people's behavior

A flat tax ignores 2).
Whether or not that's a good thing is up for debate.

Answer 5

You mean that idea where we all file our tax return on something the size of an index card?? but what about the thousands and thousands of IRS employees making $50k to $75K?? what would they do?? what about companies like H&R Block and such?? CPA's that gouge people at tax time?? Even the guys that cut millions of trees to make the paper to print all the present tax forms and instructions on,, what would all these people do??
Flat tax sounds great,, but it will never ever happen. You can't expect law makers to do what's right when their job depends on them doing what is wrong.

Answer 6

Jeff is partially right. The problem with his answer is that there is only supposed to be ONE purpose of the tax code. The second reason needs to be eliminated ASAP. I personally prefer the Fair Tax. It would abolish the IRS, repeal the 16th amendment, and replace the income tax with a sales tax.

Answer 7

A sales tax.

Answer 8

Flat tax would be an ideal situation. Unfortuneately, this will never happen under the Republican Administration

Answer 9

Yes, it is the only fair way for sure and let the weathy people pay their shares for a change...

Answer 10

good idea!