Then he would have $9,000 left to live on. The millionaire would have $900,000 left to LIVE on!!! The billionaire would have $900,000,000 left TO LIVE ON. What would these rich people care???
2007-06-16 12:37:06 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
I'm sorry but I don't believe in "no more loopholes", I agree there are many and it could be simplified but the loopholes that actually makes a real difference for the very wealthy are the loopholes that deal with the very definition of "income".
If you "control" a company there would always be ways to lower the profits of the company and good business reasons to do so. Closing these loopholes would result in American companies to pay taxes on "income" not on "profits".
When you talk about international business, and international tax avoidance, note that these are based on legitimate business needs and the right of every country to tax the companies based in there country.
2007-06-17 09:37:11 · answer #1 · answered by europeaninla 4 · 0⤊ 0⤋
A flat tax of 10% wouldn't come close to raising the revenue that the current graduated tax does. It would need to be closer to 25% - 27%. Crunch the numbers using your own tax return using those percentages and see how badly you would fare. If you wind up paying less tax, you're probably quite wealthy.
FYI, someone who earns only $10k right now pays less than $200 in Federal Income Tax. Why would you want to PENALIZE that person with 5 times as much tax?? At 25%, it would be 12.5 times higher. Please THINK about the ramifications of what you are proposing before you throw it out for comment!
2007-06-16 19:53:22 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Aha! Maybe that's why the flat tax isn't such a good idea. And that's assuming that the flat tax would only be 10% - would really have to be higher to continue the services currently provided.
And the people who think that the wealthy don't pay more taxes now that they would under this are kidding themselves, believing that loopholes and deductions absolve them of taxes. Overall, they don't.
2007-06-16 19:57:25 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
It's all 10%....
but the thing is...the people making 10k are not going to have to pay that tax....there would be a "bottom" as it were...
the people hit hardest would be those who make a million a year...no more tax loopholes...no more "sheltering"...just a flat 10%....
i think it is a dream....
people like teddy kennedy, who makes more money a year than i will see in a lifetime pays lawyers and such to keep his money out of government hands....yet...he wants me to pay more!
nope...gimme' that flat 10% anytime....
2007-06-16 19:55:41 · answer #4 · answered by Anonymous · 0⤊ 0⤋
you are assuming 10% flat rate
right now - there are higher taxes on wealthier citizens - however - they have tons of deductions and loopholes they can use to offset that to actually lessen the taxes they would pay.
a flat rate tax instituted with a no loophole or deductions feature would have them actually paying more than they normally would.
Very few of the nation actually are at the level billionaire.
And if you work hard and maybe start your own business, you can be one of the successful that need to worry about getting his/her millions excessively taxed
2007-06-16 19:48:56 · answer #5 · answered by Mike Frisbee 6 · 0⤊ 1⤋