Posted on 03/10/2014 7:06:10 AM PDT by SeekAndFind
If Republicans and pro-growth Democrats had their wits about them, they would push the flat tax.
The need for a simple flat tax was underscored recently by the comprehensive tax reform plan released by the outgoing chairman of the House Ways & Means Committee, Dave Camp (R–Mich.). The chairman decided to work with the existing tax code and has attempted to change this monster into something that encourages more economic growth. He deserves all the plaudits possible for his heroic effort.
THE GOOD, THE BAD …
Under Camp’s plan tax rates for individuals and corporations would be reduced; the hideous alternative minimum tax would be abolished; a lot of deductions would be swept away, phased out or modified; and the number of individual tax brackets would be reduced from seven to three. An estimated 95% of tax filers would be able to use the standard deduction form instead of having to itemize deductions. Much simpler!
There are, however, flaws, especially regarding capital gains and dividends, where the federal tax burden—already far too high—goes up a tad.
… AND THE REALLY UGLY
But what you really need to know is that Camp’s impressive effort to simplify the tax code runs almost 1,000 pages. Lobbyists and trade associations are already lining up to amend the proposal. And given its complexity, this bill is ripe for mischief. One of all too many examples: S corps and limited liability companies, whose profits are passed through to their owners as personal income. Under Camp’s plan this income would be declared “production” income, with tax rates capped at 25%.
(Excerpt) Read more at forbes.com ...
People like Mr. Forbes who have the ability to arrange their affairs in such a way that they have very little or no “income” love an income tax! The rest of us peons would be FAR better off with the Fairtax!
yes.
With the progressives in DC, better chance of making the earth flat again.
Steve Forbes: [ smiling ] Well, Ted, I’m flattered by your suggestion. But I didn’t write the book.
Ted Koppel: Mr. Forbes, clearly the character named “Teve Torbes” represents you.
Steve Forbes: Well, that’s one way to interpret it. I mean, the description of the character ind of fits my profile as a verile, charismatic leader of men. But, then again, my name isn’t “Teve Torbes” - it’s Steve Forbes.. which is different! Maybe it represents somebody named “Leve Norbes”.
Ted Koppel: Oh, come on! Come on! The character obviously is you! Just like “At Buchanan” is supposed Pat Buchanan, “Dob Bole” is Bob Dole, and Lamar Alexander is represented by “Lamar Alexander 2”.
Steve Forbes: Well, it seems like the author has done a very good job of disguising those names! Ted, there is one passage I find particularly interesting, if I may?
Ted Koppel: Well.. certainly.
Steve Forbes: It’s on page 42. The anonymous author writes on page 42: [ text appears on screen ] “The ladies loved Teve Torbes’ brilliant tax plan. That and the fact that he had a musky Victor Mature-like scent. no. Teve Torbes was definitely not a geek with a crooked smile. He was a babe magnet. Did I mention hos much the ladies love me, I mean him?”
Today’s Washington DC is huge (affirmative action) jobs program. Too many IRS agents would lose their jobs with a flat tax
When does a DC bureaucracy ever shrink or get the axe?
Agree... As long as we tax income, we will have to define what “income” is.. and, we’ll have to have a massive IRS to help verify the “income” of 300+ Million Americans.
Plus... wiping away ALL deductions would just give the politicians a clean slate to start playing on again. In 10 years? We’d have just as many loopholes as ever. Only, they’ll ALL go to the businesses with the best lobbyist.
The FAIRTAX would be far better, IMO.
Make it “per capita”.
How about instead of worrying about taxes, we just make a law that says the government can’t take money from one person and give it to another?
If Republicans and pro-growth Democrats had their wits about them, they would push the flat tax.
Logic isn’t allowed in D.C. note last five years.
Flat tax, yes.
Glad to see Mr. Forbes is supporting me on this.
But it has to be on ALL income, not just wages.
Income is income is income.
It doesn’t matter if you get those dollars from wages, dividends, capital gains, gifts, or theft. It’s dollars in your pocket, and they all spend alike.
A flat rate on just wages means that taxes will be paid mostly by middle-class Americans, while Forbes and his ilk hide their money from the flat tax with their loopholes, like capital gains and dividends.
The only way a flat tax will work is if everybody pays it. Even the low income and the super rich.
But elected officials, and lobbyists and CEOs and the welfare recipients will therefore fight it, so it doesn’t stand a chance.
Even if they make it “flat”, they’ll carve out exceptions to the point that it really isn’t flat.
The entire point of the current tax code is to use it as a political punishment/rewards system.
Sorry, but you’re proposing exponential taxation (IE: if I make a $1 by investing using funds that have ALREADY been taxed)
Income tax, too, as noted, does not cover those using services but able to whittle their ‘income’ to nill.
A1S8, repeal 16th and institute a nat. sales tax (but MUCH lower than the Fair Tax [see A1S8])
RE: Income is income is income.
Does it include income made from OUTSIDE the United States?
Agreed. The NRST only sounds convoluted, until you realize what an absolute cluster-fudge our current tax system is.
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