To Supporters of Flat Taxes.

Discussion in 'Economy' started by Agnapostate, Dec 14, 2008.

  1. Agnapostate
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    Agnapostate BANNED

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    Don't they ignore a rather fundamental and basic tenet of political economy, that being the diminishing rate of marginal utility?
     
  2. editec
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    editec Mr. Forgot-it-All

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    We already know the outcome of that marginal utility of diminished taxes for the already very affluent, don't we?

    BUBBLES in the various investment markets.

    That marginally useful money creates Bubbles which *POP!* when it becomes apparent to the final investment fools that the ROI isn't worth the dramatic increases in the cost of their investments.

    We're seeing that effect right now in the real estate markets, are we not?

    If but only the affluent bought more yachts and invested less, this might be a far better world for all of us, methinks
     
    Last edited: Dec 14, 2008
  3. auditor0007
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    auditor0007 Gold Member

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    A flat tax would incorporate a set amount as non-taxable income, so those who don't earn very much would not pay anything at all. Everyone gets the same exemption based on how many members in the family.

    If all income, no matter how earned, was taxed at a flat rate, the rich would pay much more than they do now, but the rate would be very fair in terms of percentages.

    As an example of our current system; everyone thinks the home mortgage interest deduction is a great thing. But when you look at it closely, the person who buys a home for $200,000, only can write off around $12,000 which would be close to their standard deduction anyway. Guess who gets the huge benefit? The person who buys two or three million dollar homes, that's who.
     
  4. alan1
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    alan1 USMB Mod Staff Member Supporting Member

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    Speaking of homes and taxes,
    most localities use property tax as a means for funding (education) schools. It's a flat tax. The person that has a $500k home pays more than the the person that has $90k home, but they both pay the same percentage.
     
  5. Orange_Juice
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    Orange_Juice Senior Member

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    Why not just have every citizen pay $20,000 a year to the government?
     
  6. Againsheila
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    Againsheila Gold Member

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    Well, for one, our family would be going in the hole every year. I know a lot of people that don't make that much.

    We'd have to kick our two kids out on the streets, or live there ourselves.
     
  7. Zoomie1980
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    Zoomie1980 Senior Member

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    All kids under 18, of course.....
     
    Last edited: Dec 15, 2008
  8. alan1
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    alan1 USMB Mod Staff Member Supporting Member

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    Make it $10,000 and you've got a deal.
    300 million people X $10k each, that ought to be enough.
     
  9. Againsheila
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    Againsheila Gold Member

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    Again, I know people who don't make that much. What are they suppose to do? Starve to death?
     
  10. Skull Pilot
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    Skull Pilot Platinum Member

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