That is one thing that really bothered me with the debates last night.How is it implemented and how could it benefit all areas of income?
2007-05-04 16:00:02 · 12 answers · asked by Anonymous in Politics & Government ➔ Politics
So the fair tax is only on goods bought?Does that then take the place of income tax period?I would think that would be a boon for Low Income then.As it would only affect purchases.Hmmm
2007-05-04 16:23:45 · update #1
Thanks everybody.I really need to study this more I guess.Somehow I just don't quite trust it as being as good as it sounds.
2007-05-04 16:36:31 · update #2
If you ever looked at the tax code. ( i.e.. all the many many rules involving income taxes ) you would see its ridiculously complicated.
The cost of gathering our income tax probably taxes a huge amount of of the money itself.
A flat tax would simplify the code and make it much easier and much less complicated to gather.
Its a fair system. If everyone pays the same %age of their income in taxes thats fair.
Say it was 10%. a person making 30k a year pays 3k. A person making 300k dollars a year pays 30k dollars.
I would say there should be an amount thats below poverty level thats tax free.
Say the first 10k you dont pay taxes on but then you pay 10% for anything after that.
Its a workable idea. It would eliminate some of the beauracracy and waste in government.
2007-05-04 16:06:20 · answer #1 · answered by sociald 7 · 2⤊ 0⤋
To screw the poor!
And people who make more money would not be paying more taxes. Many would be paying less.
A Flat Tax is a percentage of income, and the way they claim it will work is everyone will pay there share!
Well, that isn't true! Someone today who has a family and earns under $25,000 a year pay little tax. Almost all of their income goes for food and shelter. In fact many are working full time and living on the street!
A flat tax on a millionaire means little as they pay proportionately very little of their income towards food and housing!
In reality, there would be ad's on TV the next day from accountants on how to beat the system! The rich have been doing it for years, and will continue to do so. Go look at the figures and see what income bracket the most audited group is. It isn't the wealthy or business!
And which "income" will be taxed, and how will te rich hide it?
2007-05-04 23:05:31 · answer #2 · answered by cantcu 7 · 1⤊ 0⤋
Originally the Flat Tax was proposed in the early 90's. The Flat Tax would be a tax rate for all persons making more than 50,000 a year. No exemptions, no loop holes. This would mean there would be no tax shelters for rich people at all. The original percentage proposed was 15 or 22% flat tax on all income over 50,000 a year. Basically this would eliminate taxes on the regular worker, but make the rich pay more. This was greatly contested and defeated (no surprise) in congress. I believe in the idea of the flat tax for persons making over a certain amount per year, at least people making more that 50k a year should be set into a flat tax with no exemptions or shelters. The original person that proposed this was a multi-billionaire news paper tycoon that ran for president against George Bush Sr. Of course he didn't win, his radical ideas were an offense to the rich.
2007-05-04 23:39:48 · answer #3 · answered by GIOSTORMUSN 5 · 1⤊ 0⤋
A flat tax just means taxing everyone at the same rate regardless of income. That would mean the rich would get a huge tax cut, or the poor/middle class a huge increase, or a combination of both. There's nothing wrong with cutting taxes on the rich if you don't raise them for the poor and middle class, but the problem is that if you don't raise them significantly for the poor and middle class, you'd get a massive decrease in the amount of tax money the government brings in. Even the most vital government services would have to be cut severely. It just can't work.
2007-05-04 23:21:24 · answer #4 · answered by Anonymous · 1⤊ 0⤋
A "flat tax" would ensure that everyone paid a percentage of their income for taxes. It would benefit the lower incomes in the way of them paying a certain amount, and the rich would have to pay an amount regardless of shelters and such. This way, everyone would be contributing a percentage to the country for the necessary expenses.
I don't think it will ever happen in our lifetime.
2007-05-04 23:06:37 · answer #5 · answered by volleyballchick (cowards block) 7 · 1⤊ 0⤋
A flat tax says all people pay the same % of their income to tax with no deductions and loopholes.
Sounds good, but 400 Lawyers making tax law with no loopholes is just not possible:)
2007-05-04 23:06:14 · answer #6 · answered by Nort 6 · 1⤊ 0⤋
easy... Right now there is a 22% tax added to all goods. candytbars, cars whatever.. if the flat tax is used, the tax will be raised to 23% (not really enough to even notice-remember you are already paying the 22%) and thats it.. No other taxes.. none.. no IRS, no 1099 forms or w2's for federal tax... You win the lottery, the fed. gov't doesn't get a dime, well not until you go on a spending spree!!!!! look up Boortz he knows all about it...
2007-05-04 23:09:41 · answer #7 · answered by bereal1 6 · 1⤊ 1⤋
To simplify and reduce the costs associate with income taxes.
2007-05-04 23:03:57 · answer #8 · answered by Chi Guy 5 · 2⤊ 0⤋
I favor fair tax, which is based on sales, as opposed to flat tax based on income.
But either one does away with the bureaucracy.
2007-05-04 23:15:59 · answer #9 · answered by ? 7 · 1⤊ 0⤋
For the poor as we middle class have fallen to lower class
2007-05-04 23:05:46 · answer #10 · answered by Gypsy Gal 6 · 1⤊ 0⤋