Discussion in 'Economy' started by Annie, Apr 30, 2011.
Left, Right Can Love Tax Plan: Laurence Kotlikoff, Andrew Weiss - Bloomberg
Flat tax is fine with me. If you buy something, you pay the tax. If you buy nothing, you pay no tax. Unlike the current system where you pay tax up front and keep what's left only to pay more tax when you buy something. Flat taxes encourage saving as there is no taxes on what you put away. I don't profess to be a Flat Tax expert but it seems better than what we have now. Plus the Tax Code is greatly simplified: No tax breaks or loopholes only taxes paid on economic activity.
The problem I have with that would be is if it is included ON TOP of whatever tax rate we pay now. Which I'm sure is what the Bankers and Politicians want.
I don't think it is.
I do think it is a great idea if you're planning to become a black marketeer, though.
Just a VAT tax? Too regressive. The poor, especially the working poor need to spend about every cent of income-all would be taxed. The rich always have left over and that would be not be taxed.
But the poor wouldn't have an income tax so they could keep what they earn and have more to spend or save.
Taxing it on the front end and taxing it on the back end have the same effect
All you would accomplish would be inflating their 'take-home-pay' so you could brag about it, while their purchasing power would remain the same at best.
Looks like a prescription for a more nightmarish tax code than what we already have with way too many ways to manipulate the system both by tax payers and by our fearless leaders.
I'm still pulling for an ultra simple across the board flat income tax on ALL income applicable to everybody, rich and poor, alike. The gazillionaire will pay millions in taxes on such a plan and the truly poor probably still pay nothing as they won't earni above a basic exemption everybody would get. And we can all file our tax return on a postcard.
yes FF...I agree with that.
Hit me at a fat 23%, I'll live with that.
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