Tax Everyone the Same: A "Flat" Progressive Tax

Discussion in 'Economy' started by GHook93, Apr 14, 2011.

  1. GHook93
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    GHook93 Aristotle

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    Why not take out the loop holes, tax shelter and class warfare and simplify the system. If we can't go to the fair tax then go to a progressive incremental income tax. Meaning everyone first $25K gets taxed the same, ditto for the next $50K, $100K, $250K, $1 mil extra. Take out the loopholes and tax deductions and we have a better system. The business owner is taxed obvious on income (so they will in theory still have tax breaks), since we can't tax them on gross it must be on net.

    For example, Mr A. make $25K, Mr. B $50K, Mr. C $250K, Mrs. D $1 mil and Ms. E $55mil a year

    Tax Levels.....Rate
    1-$25K.....................0%
    $25K-$50K...............10%
    $50K-$150K.............15%
    $150K-$250K...........20%
    $250K-750K.............25%
    $750K-$2 mil...........30%
    $2 mil-$10 mil.........40%
    $10 mil-$50 mil........50%
    $50 mil+..................90%


    Mr A (makes $25K) pays $0.
    Mr B (makes $50K) pay $2,500 (First 25K at $0, next $25K at 10%)
    Mr C (makes $250K) pays $42,500 (First 25K at $0, next $25K at 10%, next $100K at 15%, next $100K at 20%)
    Mrs D (makes $1 mil) pays $242,500 (First 25K at $0, next $25K at 10%, next $100K at 15%, next $100K at 20%)
    Ms. E (makes $55 mil) pays $28,242,500 (You do the math :eusa_angel:)

    This system doesn't disincentive people to make more, since everything previous to the next bracket gets taxed at the dollar amount. No more tax shelter, not more accounting tricks, not more audits, no more tax cheats. Simple tax everyone the same on income coming in. Yes it appears I put a max income of $50 mil (shoot me I'm a commie :eusa_angel:)
     
  2. martybegan
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    martybegan Gold Member

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    For this to work you would have to lower the upper brackets (90%? really?) and make it deal with ALL income, not just wages. basically anything that comes in.

    The problem people will have with it is that they will lose thier favroite deductions. for it to work it would have to eliminate them ALL, credits, deductions, etc.
     
  3. peach174
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    peach174 Gold Member Gold Supporting Member Supporting Member

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    So how do the rest of us get jobs if millionaires have to pay more that half of taxes?
    If you make 50 million you keep 10 million?
    Do you know how much is paid out to workers and to keep a company running?
    You have salaries, health Ins., expenses to keep it running.
    If millionaire's are paying 40 to 90% taxes, their is no money for expansion to higher more workers.
     
  4. GHook93
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    GHook93 Aristotle

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    90% once the person hit $50 mil in income a year!!! And that is only on the $50,000,001 and up!

    No doubt entitlements are easy to give and hard to take away! Nevertheless our tax structure is a mess and needs to be blow up!
     
  5. kwc57
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    kwc57 BOHICA Obama

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    I don't see how someone else's failure to be responsible, get an education and a good job that pays well or hauls off and starts their own comany makes it my responsibility to pay more because I did those things. Rewarding laziness and penalizing hard work is back asswards.
     
  6. GHook93
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    GHook93 Aristotle

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    Peach you realize the top 1% already pays 60% of the income taxes and, according to Larry Cudlow, the top 20% pay 90% of the income taxes. So the millionaires pay everything is not ignorant argument on your part.

    You are aware I am talking about net profits. You know revenue minus cost. I think I specifically stated not gross income. :eek: Also the vast vast majority of people making over $1 mil a year are going to be C-Corp executives. Income taxes don't have any bearing on a C-Corps bottomline. They get hit with the dual Tax aka the corporate tax. So your argument that millionaires won't hire is proof you don't know what your talking about. It is true a good deal of the S-Corps and LLC, LP small business fall within the $250K-$750K range, they get effected by the income tax, but I think this scheme is favorable to them.

    I am talking about a gradual increase on the actual dollar.

    For your 50 mil a year executive, CEO, S-Corp owner etc. would pay $23,737,500.
    25K = 0
    50K = $2,500
    150K = $15K
    $250K = 20K
    750K = $125K
    $2 mil = $375K
    $10 mil = $3.2 mil
    $50 mil = $20 mil
    Total: $23,737,500
     
  7. GHook93
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    GHook93 Aristotle

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    Que?
     
  8. Herbie Hancock
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    Herbie Hancock Member

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    When I saw this topic I was about to hop on the bandwagon and am really in favor of a flat tax, minus all deductions. However, your rates are really high and I feel that everyone, even those making less than 25k, should be paying something, at least 2-3%. Also does this do away with city, county, state taxes as well? If so, the percentages would have to be reduced further. I know right now I easily pay over 50% of my income in some sort of tax, highway robbery.
     
  9. Truthseeker420
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    Truthseeker420 Gold Member

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    link to top 1% paying 60% of taxes. That can't be right.
     
  10. Truthseeker420
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    Truthseeker420 Gold Member

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    link to top 1% paying 60% of taxes. That can't be right. Maybe if you just are counting personal income tax but I doubt it. And there is a difference between tax rate and tax burden.
     

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