A flat income tax for all

Discussion in 'Economy' started by eric, Oct 30, 2004.

  1. eric
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    eric Guest

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    Time to dump our progressive tax system for a much more fair one, a flat tax for all. People who make more will pay more, people who make less will pay less, what could be more fair ?

    Why should someone who worked harder or was more creative be punished by paying a higher tax rate than someone who took the easy road ?

    I know bits and pieces have been discussed in other threads but now that we have a fourm dedicated to the economy we can have a more focused debate.

    Any thoughts ???
     
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  2. Mr. P
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    Mr. P Senior Member

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    Flat is not "fair".
    I support this.....
    http://fairtax.org
     
  3. edwbrown
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    edwbrown Rookie

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    I wonder what the flat tax rate would be.If we go to a flat rate tax system what effect it would have on all the loopholes that the rich have to take advantage of.What effect it would have on small Buinesses what countrys currently have a flat tax system.
     
  4. KarlMarx
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    KarlMarx Senior Member

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    I think that a national sales tax would be more fair. In a way, it is already a progressive tax, since the rich tend to spend more than people who make less.

    1. It would encourage investment, since the interest earned on saving accounts, bonds and dividends would no longer be taxed.

    2. It would be simpler, and eliminate the burden of determining taxes on most of us (we'd just get charged whenever we bought anything). Most businesses already collect sales tax, so it should not be an undue burden on them.

    On the other hand...

    1. If I bought a house or a corporation bought a sky scraper. Would there still be a sales tax? Would such a tax discourage investment in large items such as these?

    2. It would penalize married people with children (after all , people with children have to spend more)

    3. If the economy is in the doldrums, the best to cure it is to encourage spending. A sales tax might discourage this.


    I know, you say, we can build exceptions into the tax code....guess what? Those are loopholes, eventually we would have a complex sales tax system that might be no better than the current system.

    Don't get me wrong. I believe that the current tax system needs reform. But what needs reform even more is THE FEDERAL GOVERNMENT and it's crazy spending policies!!!!! We can end a lot of government programs, pass the savings on to Americans and there would be little to no effect on people.
     
  5. eric
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    eric Guest

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    These are good questions that would need to be studied carefully. Any change in our current tax system would be subject to intense scrutiny due to the profound effect it could have. I think most of us will agree that our current system is broken and needs fixing, BUT it does work !

    I have approached this subject from a high level conceptual view, more a principle than anything else. I too am struggling with the finer details and the effects they would have on consumers, businesses, and the economy in general.
    The hard part is that reality does not always follow theory, so we can hypothesize as much as we would like, but would it necessarily come to fruition.

    Mr. P has also proposed an interesting tax system with his link.

    Now my personal feeling is that a flat tax would be quicker and easier to implement, not to say that it is a better one, maybe just a move in the right direction, a stepping stone per se.
     
  6. eric
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    eric Guest

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    Isn't that the truth !!! A topic for a new thread for sure. Lots to say on this one !
     
  7. edwbrown
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    edwbrown Rookie

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    I agree with the points you made under on the other hand...what do you think would be the down side of a flat tax?I dont think the Federal Gov. is capable or willing to control it's crazy spending policies thats the one thing that disapoints me most about President Bush. But after 911 I can understand
    why there was a need for some of the spending it just seems to me that they went overboard with the give aways and ever company that could take advantage did and the goverment was more than willing to give it away.
     
  8. Mr. P
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    Mr. P Senior Member

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  9. edwbrown
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    edwbrown Rookie

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  10. onedomino
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    onedomino SCE to AUX

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    I favor a flat income tax for both individuals and businesses. Success in America should not be punished by a "progressive" income tax. A flat tax would treat everyone equally. There should be zero loopholes. I do not favor a sales tax system because it suppresses consumption which is fundamental to the health of the US economy.
     

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