S. 812 was recently introduced in the Senate. It has a 20% flat rate on wages and salaries (not investment income) but has a $10,000 deduction ($20,000 for married couples) plus $5,000 per child. It also allows for deduction of charitable contributions and mortgage interest (which are political realities).
To be also noted S. 812 keeps the SS/Medicare taxes place with its 7.65% wage tax on individuals, and 7.65% excise on the business side on top of that 20%.
Upping the personal deductions sure makes certain we'll have more voters interested in getting government spending under control, NOT.
So many Americans paying little or no federal taxes makes for a natural spending constituency. It's like me in the restaurant: What do I care about extravagance if you're footing the bill?
Walter Williams
Congress Critters will love that side of it.
Strange, I don't see any provisions in that bill to credit back business taxes to our exporters in there, isn't a "Flat Tax" border adjustable? Or is it just another variation of the CIT the WTO/GATT throw's back in the face of the US when we try to treat or corporate income taxes on the same basis as the EU crediting VAT payments back to its exporters in international trade.
Right there you have the prime reason Congress is luk warm on any bill retaining Corporate Income Taxes, built on the same formula as the current system. This one's DOA even before it get to the gate, with nil advantages over the current tax system at all to business or the citizen who still ends up having to prove their income to the IRS same as ever.
Upping the personal deductions sure makes certain we'll have more voters interested in getting government spending under control, NOT.It's really funny that you keep saying things like this and posting this quote considering the number of people who would pay absolutely no tax under the FairTax including the people who would profit by a rising rate. Would they care about extravagance if we were footing the bill?So many Americans paying little or no federal taxes makes for a natural spending constituency. It's like me in the restaurant: What do I care about extravagance if you're footing the bill?
Walter Williams
Right there you have the prime reason Congress is luk warm on any bill retaining Corporate Income Taxes, built on the same formula as the current system. This one's DOA even before it get to the gate, with nil advantages over the current tax system at all to business or the citizen who still ends up having to prove their income to the IRS same as ever.Said the man whipping the dead horse... I would say the chances of the Tax Reform Panel recommending a flat tax is 50/50. The chance for a NRST is probably worse than 100 to 1.