Do you favor shutting down the IRS in turn for a 10% flat tax ?

Question

This would be a flat rate tax, not an actual flat tax...
Studies have shown that this model could actually produce MORE revenue into the federal government.

The IRS is spending billions of dollars just to go auditing people who owe on average, less than $1000 in back taxes.

Answer 1

The problem is, it wouldn't be 10%. It would be 30% and then there would be folks who are grandfathered in and the poor people who get a "rebate" of their taxes so they can eat.

The IRS would still exist, but would be called a different name.

Yes, it would be nice if the underground economy (the ones who fudge their taxes) got caught, but this still wouldn't do it.

I don't know where you get your audit figures. The computered generated "audits" (the mismatch report) cost next to nothing to send out. The bulk of the true audits are on small business people who under-reported their income by an average of $10,000. Those folks owe a lot more than $1000.

Answer 2

You state the reason that a flat tax is not the way to go. It would be a tax that as a percentage hits lower income people hard, hits middle income people harder because they have more money to spend on goods that are taxable and hits the wealthy people the least. We need a graduated income tax. This type scandal has happened with the IRS in the past. There have been a few scandals, people are thrown out and the new people know not to do this again. The IRS works when they have enough people to do their jobs. I truly believe that this happened because they needed short cuts to do the job of checking out who qualified for this new tax status and it was easy to get the computer to pick out these words. These conservative political organizations using the word teaparty and in some cases patriot were easy to identify and in 90% of the cases did not qualify as an organization for the public good. They were easy targets for the IRS to manage to do their job and weed out groups that did not qualify for this status. They are political organizations and do not qualify. No. No flat tax and we need the IRS. We just need a tax code that helps create a level playing field by taxing the wealthy at much higher rates and eliminating all of the laws that allow corporations to shelter most of their taxable income. Now we will ask the IRS to administer the health care law so we truly do need them. The tax code is ridiculous and needs to be revamped.

Answer 3

>>>Studies have shown that this model could actually produce MORE revenue into the federal government.<<<

Wanna bet????

When Steve Forbes was running for President, he proposed 17% flat tax and even that was suggested was too low to keep government spending at its current levels. Experts said that the rate would have to be about 23% to stay even.

Like it or not but the best tax system is a income based progressive tax system similar to what we have now.

Answer 4

Tax is not only a means of support for our government but it is the sole support of literally millions of our citizens as well. Consider going to a flat tax, then yes you will greatly reduce the IRS. You will still need them but it will reduce savings millions of dollars in salary, but then where do those people find work? Then you have all the cpa's, tax accountants, employees of the tax prep companies all out of work in a single day. We are talking millions of job losses at one time, not to mention the "Billions" of dollars comming off the "National Gross Profit".
The unemployment rate will skyrocket, stock market will take one heck of a loss, the U.S. dollar will drop in the world market.

These are just a few of the problems caused by switching to a "Flat Tax".

Answer 5

I would favor a 15% flat tax!

But the real solution would be to simplify tax law, eliminate deduction on deductions and exceptions on exceptions crap. A 10% won't be fairn on anyone, I think a progressive flat tax would be better.

income less than 35K > 2% Flat Tax
35K to 60K > 5% Flat Tax
60K to 120K > 10% Flat Tax
120K to 250K > 12% Flat Tax
120K and up > 15% Flat Tax

current tax law's biggest bracket taxes about 40% but deductions and loopholes reduce to less than 5%.
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The bottom line,
A simplified Tax system will reduce enormously accounting work in all sectors of the economy, including individuals. This will increase efficiency in firms, bigger profits, more reinvestment and at the end more taxes to the government.

Answer 6

You will still need an enforcement agency of some sort to enforce any tax laws. Congress makes the tax laws and the IRS just enforces them. Even with a 10% flat tax you are going to have people cheating or refusing to pay their fair share.

Answer 7

The 10% tax would still need enforcement. What is income? What if you fail to file or pay it? The IRS cost would go down but not away.

Answer 8

I'm, in favor of shutting down the IRS in turn for a ZERO percent flat tax.

Answer 9

I'm not sure where you are getting your info, but it's pretty far off.