Ass-U-Me A Fair Tax Code.

Ass-U-Me-ing a fair tax code that's aimed at keeping the tax obligation of the average Joe making $75,000 per year an exact match to what he pays under the current system, what do you think would happen to the tax obligations of those making more than $75,000?

How 'bout those making less than $75,000?



Assuming fair taxes....
:eusa_think:
Why fix the rate based on the rate at 75k? That is (to me) 5the worst way to actually gauge the rate because it is precisely this group that takes it in the shorts. The rich ensure that they are not paying a commensurate rate through deductions and the poor ensure they are not paying through breaks. Essentially, I see a fair tax as increasing the burden on both the poor and the rich while the middle class (which should be the vast majority of us) would see some reductions. This would be realized by reducing the rate and axing all those deductions/credits which many of those middle class people are not able to pull in the same manner that the rich and poor do.
The first thing I think of when contemplating fairness is applying the same formula for the calculations for everyone.

The fairest concept I've ever heard of for an income tax is one of 18% with one $40,000 deduction for all. Combine this with a small consumption tax of 3% so everyone has a dog in the fight, including those making less than $40k in a year, and everyone has a tax obligation that can be understood, because it's exactly the same as everyone else's tax obligation.

Adjustments would be easy to... just change the percentage and/or the deduction. As long as nobody gets any exemptions, extra deductions or special treatment not given to everyone, fairness is achieved.
No. That is the exact same thing that we currently have. You have immediately built into that system the same exact problem that we have now – a built in ‘class’ that do not pay taxes. That gives people the incentive to increase that bottom threshold to fall into it and shift that burden to others. Class warfare.

A ‘fair’ tax is one that taxes all at the same rate, period.

I picked $75,000 because that's a fine example of an upper-middle class wage. This thread is all about comparing the tax obligations of the various classes already established with something considered 'fair'. Without keeping the obligation of the middle class average Taxpayer constant, a comparison of the extreme ends can not be made.


As for the rates and deductions question, I hear you. Unfortunately, with out exempting some income from the lower classes, a rate high enough to generate enough money to run the country would be punitive to them. Considering this, the only fair thing to do is let EVERYONE have the SAME exemption, regardless of income.

The goal in this imaginary economy would be to get to the point where one could proudly call ones self a bona fide 'Tax payer'.

The point is that the government shouldn't be subsidizing the real estate and health insurance of the wealthy any more than it should be subsidizing the poor with Earned Income Tax Credits and Obama Care Tax Credits.
 
The first thing I think of when contemplating fairness is applying the same formula for the calculations for everyone.

The fairest concept I've ever heard of for an income tax is one of 18% with one $40,000 deduction for all. Combine this with a small consumption tax of 3% so everyone has a dog in the fight, including those making less than $40k in a year, and everyone has a tax obligation that can be understood, because it's exactly the same as everyone else's tax obligation.

Adjustments would be easy to... just change the percentage and/or the deduction. As long as nobody gets any exemptions, extra deductions or special treatment not given to everyone, fairness is achieved.


Really, the first thing you think about is income tax?

ds
In reality, the fist thinf you should consider is that income tax can NEVER be Fair, no matter what the rate. Income tax punishes production. If you try to make more money, you just get taxed more, so why bother trying to make too much. Only the FairTax eliminates the income tax, the IRS and 90 percent of the lobbyists. It REPLACES the income tax and makes every one aware of exactly how much they are being taxed. Then we can do some thing about the rate. Call or write to your congress man and tell him to support and vote for HR 25

Reread the sentence, Bud.

I said "The first thing I think of when contemplating fairness is applying the same formula for the calculations for everyone."

Nothing at all about taxes - simply acknowledging the unfairness of customizing the caluclations used to score the players in ANY game.

Congressional corruption begins with their perceived right to customize the tax code for friends and campaign donors.
 

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