To Supporters of Flat Taxes.

[Agnapostate]

Don't they ignore a rather fundamental and basic tenet of political economy, that being the diminishing rate of marginal utility?

 

[editec]

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

 

[auditor0007]

Don't they ignore a rather fundamental and basic tenet of political economy, that being the diminishing rate of marginal utility?

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.

 

[alan1]

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.

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.

 

[Orange_Juice]

Why not just have every citizen pay $20,000 a year to the government?

 

[Againsheila]

Why not just have every citizen pay $20,000 a year to the government?

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.

 

[Zoomie1980]

....I know a lot of people that don't make that much....

All kids under 18, of course.....

 

[alan1]

Why not just have every citizen pay $20,000 a year to the government?

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

 

[Againsheila]

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

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

 

[Skull Pilot]

Americans For Fair Taxation: An Open Letter to the President, the Congress, and the American people Concerning Reform of the Federal Tax Code

Americans For Fair Taxation: Calculator

The more I read about the Fair Tax proposal, the more I like it.

 

[Zoomie1980]

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

Yes

 

[indago]

The more I read about the Fair Tax proposal, the more I like it.

What are your complaints about the constitutional taxing system?

 

[Skull Pilot]

What are your complaints about the constitutional taxing system?

The "constitutional" tax system is full of unneeded complexity and cost.
And it is inherently unfair to assess taxes at different rates for different people.

 

[DiamondDave]

The "constitutional" tax system is full of unneeded complexity and cost.
And it is inherently unfair to assess taxes at different rates for different people.

bingo

 

[Agnapostate]

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.

Then wouldn't it essentially function in the same manner as a progressive tax?

The "constitutional" tax system is full of unneeded complexity and cost.
And it is inherently unfair to assess taxes at different rates for different people.

But again, what of the issue of the diminishing rate of marginal utility?

 

[DiamondDave]

If you are talking about good etc.. makes sense.. .or like with the old adage of marginal utility going down as you relieve your hunger with the first cracker and each subsequent cracker after that

It really does not fit in a flat tax model... and the flat tax model is inherently more palatable over increasing tax burden with additional steps into the income bracket

Now we could get more into marginal tax rates and various aspects of taxation... but the fact is with a complicated and punishment based progressive tax system, the impact is actually worse than with a flat tax

 

[DiamondDave]

Ideas: Declining marginal utility, progressive taxes, and fairness

Interesting read on it as well

 

[indago]

The "constitutional" tax system is full of unneeded complexity and cost. And it is inherently unfair to assess taxes at different rates for different people.

You won't find anywhere in the Constitution where it is written that government was granted the power "to assess taxes at different rates for different people", let alone the power to even lay a direct tax upon the inhabitants of the States.

 

[editec]

Flatten incomes and flattened taxes make sense.

Otherwise, flat taxes are nothing more than a pipedream of the bourgeoisie

 

[DiamondDave]

Flatten incomes and flattened taxes make sense.

Otherwise, flat taxes are nothing more than a pipedream of the bourgeoisie

idiotic bullshit....

Being taxed the same rate on every dollar earned does not make sense... yet being taxed the same rate on every dollar spent does?

Again... you show your ignorance and your support of a punishment system based on nothing more than greed, envy, redistribution, and guilt

Selective equality when it benefits you.. inequality when it benefits you... and when it buys the votes of those receiving the benefits, all the better... the liberal mantra