Replies

I've said it before that what we need is a flat tax. The Fair Tax agenda is too controversial and a bigger step than most are probably willing to take.

Let's get a nice flat tax rate picked out and apply it. No complicated forms, no deductions. Exempt people below the poverty line for the first 5 years after the introduction of the flat tax. After that, no more breaks for those below the poverty line. By then, they probably won't need the break because the economy should get a real healthy boost and prices on goods might even drop.

We do away with corporate taxes and the estate tax, and 90% of the IRS.

I've said it before that what we need is a flat tax. The Fair Tax agenda is too controversial and a bigger step than most are probably willing to take.

Getting 100% of your paycheck is too controversial? Eliminating the oppressive IRS is too controversial? If those are the criteria for being controversial then I'm the most controversial person you'll ever meet! It's only controversial if not enough people don't support the Fair Tax. Given the momentum that is becoming less likely.

I agree wholeheartedly. I just finished reading "Flat Tax Revolution" by Steve Forbes. A bunch of countries in Eastern Europe, including Russia are moving to a flat tax and their government revenues are going through the roof.

Forbes proposes a 23% flat tax, with generous exemptions. Single: $13,200, Married: $26,400 ( 2 x single deduction), plus dedictions for children.

While the mortgage interest deduction goes away under the flat tax, so does the capital gains tax. The net effect though trends positive for nearly everyone.

And businesses pay the same rate with an added bonus. No depreciation tables. Whatever you buy you can deduct in full for that year. Incur losses due to expenditures or misfortune, and you can carry those losses forward to offset future profits.

The Flat Tax is something that can be enacted without forcing major changes to the constitution. Necessity may send us in this direction as Europe can rejuvinate itself if more countries get encouraged by the flat tax idea.

Bottom line, it is being tried in the field by several countries, they are prospering, and its going to catch on. Eventually we'll have to scrap what we have based on competitive necessity.

A flat tax still taxes productivity (income). Taxation is punishment. Why punish people for being productive?

A flat income tax only taxes American income earners. The Fair Tax also taxes any foreign tourists. A flat tax keeps the IRS around. The Fair Tax abolishes the IRS. The Underground Economy evades the flat income tax. The Fair Tax captures the Underground Economy. The flat income tax still forcibly takes money before it reaches the income earner. The Fair Tax gives all income earners 100% of their earned income. The government gets its cut when you voluntarily go shopping.