Is there a problem with everyone paying the same percentage tax on their income? 3,5,10 percent? Whatever it is, everyone pay the same. No limits on min or max income, straight across the board.
2007-09-24 11:34:01 · 7 answers · asked by Thorgirls' Master Du! 1 in Politics & Government ➔ Politics
Ony 1 caveat I have is an exemption on the first X dollars (whatever that number is to be)
The ultra-wealthy do not pay the outrageous rates you all suppose they do, because they have resources with which to shelter that income. Nevertheless, they still pay the bulk of the tax bills.
Penalizing the wealthy by making them pay a higher rate is socialism, and it's stupid. It's based on flawed fundamental assumptions:
A) there is a finite supply of wealth, so if I have more than you, I have somehow taken away from you.
B) The government can manage money better than an individual.
C) The wealthy put their money in a vault and do not use it to create jobs and increase productivity.
Believe it or not I have had people seriously argue with me on all three of these points, taking them as if they were gospel.
2007-09-24 12:36:42 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It would be a problem only for the Internal Revenue Service (if everyone paid a flat tax, the IRS could be staffed by quite a few less folks), CPAs (same reasons as IRS), HR Block and the like (if everyone paid a flat tax, no body would have to hire someone to do their taxes), tax attorneys, etc.
That's one big reason why it will probably never happen.
Too many special interest groups who would be negatively affected.
2007-09-24 11:39:32 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Suppose a flat tax exists of 8%. Now, further suppose that, for whatever reason, you make only $30,000 annually. This leaves you with $27,600 presuming other taxes haven't been taken out...which they have. Let's say that the other taxes claim another 8%, leaving you with only $25,200 as your net income.
Now also presume that I make $300,000 annually. This would leave me with $276,000 before any other taxes are taken out and $252,000 as my net income.
Would you rather have $25,200 or $252,000? This is why the ultra-wealthy *love* the idea of a flat tax--they pay less, relatively speaking.
2007-09-24 11:40:25 · answer #3 · answered by Mathsorcerer 7 · 1⤊ 1⤋
It's a good idea in theory, but it's not practical. To balance the government budget the tax rate would have to be something like 30%, otherwise there would not be enough tax receipts to cover the government bills.
Now, to someone making 1M a year, that's $300K in taxes. That's not going to leave them in the poorhouse.
For someone making 35K a year, that's 10.5K gone to Uncle Sam, and 24.5K for me. I would feel squeezed, to say the least.
For someone making $20K a year, they would have to give the gov. 6K a year. Do you really expect them to be able to live on 14K a year without getting government assistance?
2007-09-24 11:54:25 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Flat tax. I agree 100%. Yes!
2007-09-24 11:39:17 · answer #5 · answered by Kelly B 4 · 1⤊ 0⤋
Flat tax....it would put a lot of tax accountants out of business.
2007-09-24 11:37:30 · answer #6 · answered by Anonymous · 0⤊ 0⤋
The problem is the all the loop holes that the rich will lobby for and get due to the ever present corruption with the elected officials.
2007-09-24 11:38:23 · answer #7 · answered by !truth! 7 · 0⤊ 1⤋