Way too much room for manipulation, just like the current code we have now.
Flat tax = everybody pays the same....no wiggle room.
The Flat Tax is the only fair tax. Everyone has skin in the game and everyone will pay attention to their own business. You pay 10% (or whatever) and that’s it. That is the very definition of a fair tax.
Which sadly is exactly why it will never go away. The current system gives tremendous power to elected officials to pander to and reward their political supporters.
I laugh every time I hear about the "welfare reform" in the 1990s. Whatever "reform" there may have been, was rendered entirely moot with all the tax-credits that followed. Sure, someone making $20K (or so), may not qualify directly for "welfare", but they do qualify for innumerable tax credits. It's still wealth transfer, only it's more stealthy. I don't think there enough politicians of any stripe who will voluntarily give up that power.
Let me tell you a little something about the flat tax and the FAIRTAX:
1. Our CURRENT tax system started out as a FLAT tax (see “Revenue Act of 1861”)
2. Our current tax system is nowhere near flat - anymore.
3. All the flat tax would do is return us to the same system we started out with. In 100 years we would be right back where we are now. Is that what we want for our grand-kids and their grad-kids?
4. The flat tax retains the IRS - the FAIRTAX eliminates it.
5. The flat tax gives politicians the ability to lobby to include/exclude specific products - The FAIRTAX is “fair” because ALL NEW GOODS and SERVICES at the retail level would be taxed the exact same rate at the register: 23%
5. The flat tax does not promote business ownership - the FAIRTAX eliminates the tax burden that businesses currently have to deal with.
6. the flat tax DOES NOT address Social Security or Medicare contributions - the FAIRTAX eliminates the payroll tax (both YOUR share AND your employer’s share - the entire 15.3%)
7. The flat tax is still an INCOME tax, which means that you will still have to file an annual tax return - the FAIRTAX ELIMINATES all personal and corporate INCOME taxes, so there will NEVER be another “tax return day”, meaning April 15th will be just another day.
8. The flat tax PUNISHES US exports by taxing them - the FAIRTAX encourages US exports by removing the tax burden. This allows our “Made in the USA” goods to compete on a global market.
9. The flat tax discourages home ownership by ADDING 17% to ALL home purchases - the FAIRTAX facilitates home ownership by a) Eliminating taxes from USED homes, and b) removing embedded taxes from the home building processes.
10. Flat Tax System - 24.65% (inclusive including FICA social security tax) = 32.5% (exclusive rate )
=17% (inclusive withholding income tax rate) + 7.65% separate inclusive FICA Social Security tax rate
= 24.65% total inclusive tax rate (converts to 32.5% exclusive rate) under the current Flat Tax proposal.
FAIRTAX System - 23% (inclusive rate includes FICA) = 30% sales tax (exclusive sales rate includes FICA)
on consumption of NEW Goods & Services ONLY at the point of end use retail only.
11. The flat tax tax payer base DOES NOT include the underground economy, illegal aliens, and tourists - the FAIRTAX taxes drug dealers, illegal aliens, prostitutes, and other underground workers at the register.
12. The flat tax taxes the poor the same as it taxes the rich, meaning that the poor will actually pay out a higher percentage of their income to taxes - the FAIRTAX provides EVERY LEGAL US CITIZEN with a monthly prebate check to UNTAX their necessities up to the National Poverty Level.
CONCLUSION: The flat tax is not worth supporting - the FAIRTAX will encourage growth in American Business and the American Economy.
UNDERSTAND IT AND YOU WILL DEMAND IT!!!