I would love to see someone point out why that might be a bad idea or not fair?
"I really like the idea of 15% flat tax across the board.
I would love to see someone point out why that might be a bad idea or not fair?"
For one thing, if the past 90 years of experience with an income tax has taught anything, it is that flat INCOME taxes don't stay flat. What we have now is a flat tax 90 years removed from inception. As recently as 1986, we had an "almost flat" tax. The IRC today is far worse than the one that was simplified in 1986. The inescapable conclusion, after 90 years of attempting to define what this concept called "taxable income" is, is that it is impossible to do in a stable and economically positive way, at least within the context of our political system.
Another problem is the way that tax costs "cascade" in our production chain, driving up prices to the next level. This makes it difficult for our products to compete with those that are made outside the country and is a major factor in our trade deficit, which is currently approaching $1/2 trillion/year. Not only are US produced products less competitive than they should be in foreign markets, but even here in our own, the largest consumer market in the world. This is insane! Why in the world would we want to have a tax system which puts our producers at a disadvantage in an increasingly global economy. We need a tax system for the 21st century, not the antiquated mess we have now.
The flat tax, BTW, retains both the corporate income and the payroll taxes and therefore does nothing about the second problem discussed above.
"I really like the idea of 15% flat tax across the board.
I would love to see someone point out why that might be a bad idea or not fair?"
Hey, even God only asked for 10%.
15% is too much by 10 percentage points.
I would love to see someone point out why that might be a bad idea or not fair?
The income tax is like a cowpie.
Flatten it, and it's still a cowpie.
;-)
But all joking aside, the flat income tax has been subjected to rigorous examination and extensive debate for the last decade. It has failed to meet the test of true fundamental tax reform. It has lost the debate. Bury it, it's dead.
Dennis Hastert knows this. He also knows that the VAT is not acceptable. But he offers it as a way to forward the public debate.
While it would be fair, it would be almost as intrussive as the current system. The government has no business poking it's nose into my financial affairs.
I would SO support this as well! Let's hope this catches on before the election. It could really help GWB.
The 15% seems great on the surface. Next year it will be 16% or 17% The year after that it may be 17% or 18 %. Where will it stop? Oh ya I forgot. Rebates, deductions, exemptions for some not for others. To me it's a real Pandora's box. We have sales taxes in about every state now and none give rebates, deductions exemptions to the poor - they pay. These started in most cases at 1%. When you have to save every receipt from everything you buy then apply for the exemption you'll realize the headache it can cause.