- Nov 26, 2011
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Really?
Can you explain graduated income tax under that theory?
Easy peasy. Everyone who earns the same pay you do is taxed the same amount as you. The federal government cannot give you a higher tax rate for an irrational reason, such as you being left-handed or a vegetarian or black or gay, etc., etc., etc.
If you qualify for them, you get to take the same deductions as everyone else. You cannot be denied the mortgage interest rate deduction if you paid mortgage interest.
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They can give me a higher tax rate based on my marital status though, can't they?
They can also give you a higher tax rate based on whether or not you pay interest on a home loan, too. As long as everyone has equal opportunity to own a home (versus equal access), that is not a discriminatory deduction.
If you are getting at the Fair Tax, I am actually warm to that idea. But even the Fair Tax acknowledges the regressive discrimination of everyone paying the same tax rate. It has a provision to provide rebates every month to offset the discriminatory nature of a flat tax.
But a Fair Tax is just as susceptible to manipulation and corruption as our current structure. However, it has the extra advantage of being a consumption tax rather than a tax on labor, which I like.
I would rather remove all deductions, loopholes, subsidies, whatever you want to call them, and go with lower, yet still progressive, tax margins.
If you simply disavow any deductions, it cannot be manipulated. No Congressman can sneak in a loophole in order to gain votes or campaign contributions.
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