A flat tax on all income is the most fair. A large national sales tax (value-added as some refer to it) is unfair to many groups for whom it would represent MORE DOUBLE TAXATION -- as we are being screwed on SS payments now.
Take retired seniors, who have no job income, per se. They would continue to have to pay taxes, even without income. Given these people have paid into SS all their working lives, they should be free of a tax burden EXCEPT for a flat tax ON ADDED INCOME. They should not be double-taxed just to live on their own funds on which they have already been taxed.
My solution: A Flat Tax on Earned Income and NO TAX ON SS DOLLARS since they have already been taxed.
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John Linder in the House & Saxby Chambliss Senate, offer a comprehensive bill to kill all income and SS/Medicare payroll taxes outright, and provide a IRS free replacement in the form of a retail sales tax:
H.R.25, S.1493
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.Refer for additional information:
Unless they totally remove the income tax and cut all frivolous federal spending, true tax reform will never happen. Unfortunately, I don't really see that happening. The feds are more interested in wasting money on unconstitutional social programs than they are on actually doing right by the American taxpayer.
Income tax was originally very simple - back-of-a-postcard simple. It was then made complicated by endless "reasonable" modifications. Flat or NRS tax will fail for the same reason: sure it will be simple at first, but there will soon be exemptions, increases, and loopholes all in the name of "reasonable" special cases.
Originally there was NO income tax. The country got by just fine. The feds were Constitutionally prohibited from direct taxation; the feds levied tarrifs or charged the states, and the states figured out how to get the money.
Replace the tax code? Absolutely. Make it SIMPLE.
More importantly, STOP SPENDING SO FRIGGIN' MUCH TAX MONEY. Bickering over how to get the money pales in comparison to why it's being collected in the first place.
I don't expect The Congress to get into this. Hell, they're already running for the hills on Socialist Security Reform.....
We need to get the contact information for the Bush tax panel and let them know we want a FairTax.
I have not been able to locate contact info, however.
If anybody knows how to reach them, let me know.
And that's all that will happen.
Something needs to be done. We have an entire underground economy and it needs to pay its fair share.