If “No exemptions for anything what-so-ever” were enforced, I’d be for it.
I’m not going to rip you to threads. I agree. A flat tax is a fair tax and the more you consume, the more you pay. You’re rich, you buy alot - you pay alot. You’re poor, you buy your kids clothes at garage sales - you pay almost nothing.
I’m sold.
Oh, and it will never happen - you do know that don’t you?
I agree with you 99.99999 percent. The only thing I don’t believe we will ever see is a Civil War. It would be too difficult. First the South would not want it as they were beaten badly the last time. The north would not want it as there is not an interest. If it was a Red vs. Blue state type, then some states that are purple would have to chose sides. It would be a big mess.
Ok, you asked for it.
(Actually I agree with everything you wrote, and have been advocating the exact same thing for literally decades -- 10% flat tax, no writeoffs.).
One suggestion - leave mention of businesses paying taxes out of your essay. They don't, this only plays into the marxist narrative.
Otherwise, I'm up for a flat tax that EVERY INDIVIDUAL above a certain level of poverty pays.
Commies think a flat tax is unfair.
IMHO, the Flat Tax proposals will be much easier to implement than the Fair Tax.
Why would you want to tax business?
That may sound counter intuitive but every single dollar you take from business is a dollar less that goes to investment or payroll. Business investment does more good than “government investment” and payroll gets taxed anyway.
Taxing business only increases cost and that passed on cost is actually an invisible income tax that every last one of us pays.
There are also issues with taking away current deductions. If you think the housing market is bad now, just start talking about doing away with the mortgage deduction.
The tax situation is screwed up, not because the rich aren’t paying enough or there aren’t enough revinues, it is because we have a spending problem. Even more we have a philosophy problem.
Wealthy and established people already own most everything they want.
So for #3 your plan double taxes the small business. In order to protect themselves from lawsuits, small businesses often organize themselves as S corps or C corps.
If they company makes a profit, then pays taxes, then pays themelves a salary, then the person pays taxes on that salary, you have taxed the same income twice.
Some will then say - change the corp structure to sole proprietor but that then forces more risk onto the small business owner as their non-business assets such as their homes and cars become attackable via a lawsuit against the business.
Also, how would you address the business tax? Would you tax revenue or profit. If you tax profit, then you have to allow deductions for expenses to operate the business. If you tax revenue then you have created a national VAT that is inflationary as all the businesses will simply pass on the VAT to the price of their product.
Yes, from DOLLAR ONE of income. If you are poor, you should feel pride contributing to the US of A at the same rate that Bill Gates does. (In reality the poor should pay more since they consume more public services, but let’s not quibble.)
Absolutely love the flat tax however, we are having a civil war in this nation.
It is a cold civil war but eventually will turn hot.
The left with the government at their disposal has already declared war while too many conservatives are in denial.
Fine by except the government becomes less accountable for how they spend revenues and there will still be those who clamor for credits in areas such as inventions of biotech, charity, etc.
Additionally, the lawyer lobby will not allow the flat tax as it competes with their interests - tax planning, estate planning, avoidance, insurance, etc.
The lobbyists aren’t going to let it go, ever.
Think about it.
If the Oracle of Omaha is out there spouting off about how the death tax is an issue of morality and fealty to the state and he thinks everyone should pay estate taxes, why someone that rich be a proponent of letting loose monies upon one’s death?
He sure ain’t giving up his wealth to the government while alive, so why would he sell the morality of Death Taxes?
Because he as very heavy interests and investments, as well as owns, many casualty and life insurance companies.
The lack of a an estate tax is not only the single biggest competitor to “casualty and life” companies, it is, in fact, a monopoly competitor from the view and standpoint of “casualty and life” companies, law firms that specialize in estate planning and tax avoidance.
The very wealthy have huge egos and they do not intend on giving the government any more than they have to, even in death.
So that’s why the flat tax will never happen. It’s a direct competitor to very large lobbyists and the firms they represent.
BTTT
I am curious about something.
How is it that a graduated or progressive income tax can be discriminatory in the first place?
It seems to violate the 14th Amendment.
That being said, there seems to be something inherently evil about the income tax, because every American has to document their income and provide the knowledge to the IRS.
That seems extremely totalitarian to me.
In a free society, the only time one should be required to document their income for the government is if one has been legally accused of engaging in a criminal enterprise.
In any event, people shouldn’t be working a quarter of the year to pay the federal government. The government shouldn’t be confiscating a third of our wealth.
If we have to tax anything, it should be consumption and imports, which is what this country did before the advent of the income tax.
There is no perfect answer but one of the best I can see movement of govt back to the state level from the fed. Let the states compete on what tax structure they want. REPEAT, THERE IS NO PERFECT PAINLESS ANSWER.
Hang on, you said no deductions for businesses right? Can they write off salary’s or must they pay tax before they pay their employees? How about rent on the building? In other words are you taxing profit or income. If you tax business income then unemployment just hit 90%. Just saying.
Business taxes are an indirect tax on individuals, so that’s a nonstarter. Businesses just add the cost of taxes to the product and the public pays it, so cut out the middleman, or, alternatively, have ONLY business taxes. The rich would pay more, the poor would pay less, the IRS could go pound sand.