It also finds that 69 percent of Americans who have $500,000 or more in assets earned their wealth through work, business ownership or investments. Only 6 percent gained their wealth primarily through inheritance, and the remaining one-quarter attained their assets through both inheritance and earnings
Future Shock? Not for Earners and Retirees
Now while I've felt for a long time that a flat tax was a "fair" tax , mainly because it was fair across the board for all, there are a few exceptions in my humble opiion. One is, I would submit that all Dollars are not the same when measured in terms of how they are earned. for example, those that tend to have more wealth have more income to invest, and that income earned through those investments is not income earned through work but rather is the same as when you or I go to Las Vegas and bet on Roulette Wheel with a few minor exceptions, in that some are safer than others. So then the question becomes, are the taxe's levied against those "earnings" fair under a "flat" tax scheme, because in general those middle class earners as well as the poor do not have the disposable income to make those investments to earn that income in the first place. One can argue that calling, investing "work" is a bit of a stretch, but I suppose if you work for an investment firm and do it for a living there is always an exception.
There is much arguement on boths sides of this however, here are a few things to consider,
The Russian Federation is a considered a prime case of the success of a flat tax; the real revenues from its Personal Income Tax rose by 25.2% in the first year after the Federation introduced a flat tax, followed by a 24.6% increase in the second year, and a 15.2% increase in the third year.[15] The Laffer curve predicts such an outcome, attributing the primary reason for the greater revenue to higher levels of economic growth stemming from the introduction of the flat tax.
Then there is the "alternative version of the Flat Tax;
Hong Kong Some sources claim that Hong Kong has a flat tax,[54] though its salary tax structure has several different rates ranging from 2% to 20% after deductions. Taxes are capped at 16% of gross income, so this rate is applied to upper income returns if taxes would exceed 16% of gross otherwise.[55] Accordingly, Duncan B. Black of Media Matters for America, says "Hong Kong's 'flat tax' is better described as an 'alternative maximum tax.'" [56] Alan Reynolds of the Cato Institute similarly notes that Hong Kong's "tax on salaries is not flat but steeply progressive."[57] Hong Kong has, nevertheless, a flat profit tax regime.
Flat tax - Wikipedia, the free encyclopedia
On a personal level, I'm of the opinion that taxes should be used not only as means to fund the Govt. but as a means to promote commerce in this nation. I will try and explain, If this nation instituted a "flat tax" for all, including companies, other than paying lower taxes they would have no other incentive to produce in this nation other than that. However, if for example that tax only applied lets say to those companies willing to produce here let's say apply the 51% rule then I would have no issue with it.
Lastly, Seniors, vets, and those who cannot help for themselves, (disabled), are for the most part how a society is measured in terms of its advancement. To say such things as those , espcially those who's shoulders we stand upon, that they are not doing their fair share, simply because they may be recieving a Social Security Check, because they have contributed often times 60 years of their lives building this great nation, or the solider or sailor wounded in battle or service to this nation they are somehow not doing their fair share, to say to them you need to pay more, that's also unfair. I will leave some with these words,
Ronald Reagan
We shall reflect the compassion that is so much a part of your makeup. How can we love our country and not love our countrymen, and loving them, reach out a hand when they fall, heal them when they are sick, and provide opportunities to make them self-sufficient so they will be equal in fact and not just in theory?
Ronald Reagan: First Inaugural Address. U.S. Inaugural Addresses. 1989
Future Shock? Not for Earners and Retirees
Now while I've felt for a long time that a flat tax was a "fair" tax , mainly because it was fair across the board for all, there are a few exceptions in my humble opiion. One is, I would submit that all Dollars are not the same when measured in terms of how they are earned. for example, those that tend to have more wealth have more income to invest, and that income earned through those investments is not income earned through work but rather is the same as when you or I go to Las Vegas and bet on Roulette Wheel with a few minor exceptions, in that some are safer than others. So then the question becomes, are the taxe's levied against those "earnings" fair under a "flat" tax scheme, because in general those middle class earners as well as the poor do not have the disposable income to make those investments to earn that income in the first place. One can argue that calling, investing "work" is a bit of a stretch, but I suppose if you work for an investment firm and do it for a living there is always an exception.
There is much arguement on boths sides of this however, here are a few things to consider,
The Russian Federation is a considered a prime case of the success of a flat tax; the real revenues from its Personal Income Tax rose by 25.2% in the first year after the Federation introduced a flat tax, followed by a 24.6% increase in the second year, and a 15.2% increase in the third year.[15] The Laffer curve predicts such an outcome, attributing the primary reason for the greater revenue to higher levels of economic growth stemming from the introduction of the flat tax.
Then there is the "alternative version of the Flat Tax;
Hong Kong Some sources claim that Hong Kong has a flat tax,[54] though its salary tax structure has several different rates ranging from 2% to 20% after deductions. Taxes are capped at 16% of gross income, so this rate is applied to upper income returns if taxes would exceed 16% of gross otherwise.[55] Accordingly, Duncan B. Black of Media Matters for America, says "Hong Kong's 'flat tax' is better described as an 'alternative maximum tax.'" [56] Alan Reynolds of the Cato Institute similarly notes that Hong Kong's "tax on salaries is not flat but steeply progressive."[57] Hong Kong has, nevertheless, a flat profit tax regime.
Flat tax - Wikipedia, the free encyclopedia
On a personal level, I'm of the opinion that taxes should be used not only as means to fund the Govt. but as a means to promote commerce in this nation. I will try and explain, If this nation instituted a "flat tax" for all, including companies, other than paying lower taxes they would have no other incentive to produce in this nation other than that. However, if for example that tax only applied lets say to those companies willing to produce here let's say apply the 51% rule then I would have no issue with it.
Lastly, Seniors, vets, and those who cannot help for themselves, (disabled), are for the most part how a society is measured in terms of its advancement. To say such things as those , espcially those who's shoulders we stand upon, that they are not doing their fair share, simply because they may be recieving a Social Security Check, because they have contributed often times 60 years of their lives building this great nation, or the solider or sailor wounded in battle or service to this nation they are somehow not doing their fair share, to say to them you need to pay more, that's also unfair. I will leave some with these words,
Ronald Reagan
We shall reflect the compassion that is so much a part of your makeup. How can we love our country and not love our countrymen, and loving them, reach out a hand when they fall, heal them when they are sick, and provide opportunities to make them self-sufficient so they will be equal in fact and not just in theory?
Ronald Reagan: First Inaugural Address. U.S. Inaugural Addresses. 1989
