WSJ: One Simple Rate - A flat tax would uleash a stupendous economic boom, by Steve Forbes

Wall Street Journal ^ | August 15, 2005 | STEVE FORBES

[OESY]

Mr. Forbes, editor in chief of Forbes Magazine and president & CEO of Forbes Inc., is the author of "Flat Tax Revolution: Using a Postcard to Abolish the IRS" (Regnery, 2005).

[blue_nova]

The other part of this will be the elimination of paper money
greater than 10$. Everything over that would be done via credit cards or one time use money orders.

[Wolfie]

One-half of their efforts are directed at wrangling changes in the tax code....

Which is why we'll never be rid of the tax code.

[clee1]

The current tax debate is simple to explain:

The current code allows the very richest to shelter their earnings in ways that are unavailable to Joe Sixpack, and for the poorest to get a totally free ride. Vast amounts of time and money are spent to keep this disfunctional system alive. In addition, a corrupt and overreaching federal bureaucracy (the IRS) is a mechanism used to keep the sheeple under tight control.

The "flat" tax is what our current system started out to be. Forget that our Founders wanted excises and duties to pay for the cost of government; any attempt to go to a flat tax will result in the same mess we have now - eventually.

Lastly, the Fair Tax - the rich don't like it because they will lose their comfortable tax shelters, and will have to foot a huge tax bite when they spend money for their luxuries. The little guy ought to love it, because they maintain their free ride. The middle class will love it because it gets the IRS off their back, and will allow them to save money tax free.

It really is that simple. If you love freedom, hate the IRS, and are ready for a positive change for America... support the Fair Tax (HR 25, SB 25).

[Wonder Warthog]

"The other part of this will be the elimination of paper money greater than 10$. Everything over that would be done via credit cards or one time use money orders."

And whyever would THAT be done?? There is no reason for it, and I am absolutely opposed to it.

[Wonder Warthog]

The "flat tax" will NOT abolish the IRS, and the "Fair Tax" (national sales tax) is a better way of reforming the tax code.

[HostileTerritory]

the rich don't like it because they will lose their comfortable tax shelters, and will have to foot a huge tax bite when they spend money for their luxuries.

Until every luxury retailer in America closes down and reopens in Tijuana, Nuevo Laredo, and Windsor, Ontario. The very rich don't have much trouble traveling. You and I (I assume you aren't in the very rich) will get hit with the 30% sales tax any time we go to the mall.

[Eric in the Ozarks]

A typical elitist idea from the Beltway.

[blackie]

Flat Tax ~ Bump!

[.cnI redruM]

>>>>By junking the entire federal income tax code and starting over with a flat tax.


This is not as far out of reach as it seems. Even the die hard Legacy America Liberals at TNR have published articles advocating a National Sales Tax.

This shows that even Ted Kennedy has figure out that there is widespread anger over the fraud, waste and abuse rampant in the current tax system.

[Doctor Stochastic]

I expect a national sales tax in addition to an income tax. Both have great possibilities for social engineering. For example, food could be slightly taxed and tobacco and alcohol taxed at a high rate. Likewise, fatty food could be taxed at a slightly higher rate than leafy green vegetables. "American" companies could be taxed at a lower rate than "foreign" companies. (A Ford assembled in Mexico vs a Toyota assembled in Alabama for example.)

[clee1]

OK, so they buy elsewhere. Haven't you every heard of "import duties" ? They will pay the tax, whether they but here or abroad.

No, I am not very rich, but I am in the middle class. Yes, we will face the tax when we go to the mall. However, we will get to keep every last cent of our paychecks, and we (as well as every taxpayer) will have our taxes rebated up to the poverty line.

The choice will once again be ours: hmmmm... do I buy that $130 pair of Nikes, or do I buy the $30 pair of Keds and bank the rest?

Sure, when there is a "consumption tax" you are going to pay when you consume. The rebate will subsidise groceries, etc. but EVERYONE will pay the freight for nonessentials - rich, middle class, poor.

[.cnI redruM]

Already happening with local taxes. Next time you fill up The Stochmobile, look at how much of your per gallon price is taxation.

[FarmerW]

The other part of this will be the elimination of paper money greater than 10$. Everything over that would be done via credit cards or one time use money orders.

Why would that be?

I find myself leaning slightly to the flat tax system, mindful of the fact that is how the current mess started.

I am concerned that the fair tax system would end up being a hidden tax. I also wonder how it would ever pass, seeing that the opposed would be able to claim it is an inherently unfair system as lower incomes spend all their income, paying tax on all their income, while upper incomes are able to save a portion, thus that portion being untaxed. I really do need to do some more reading and educate myself more on both systems.

[Savage Beast]

Forbes is right.

Leftists typically push for unwieldy laws and big, complicated, burocracies and government; then they spend countless effort getting around these laws. They seem to feel that enacting a law to solve a problem actually solves the problem; thinking beyond this is of no concern to them.

The unwieldy tax system is an excellent example. I don't know how many Leftists have explained to me how they get around the tax laws. One woman, who works for the Democrat Party, explained countless times that she has a "creative accountant" and that I should employ him. I didn't follow her advice about this any more than I would about anything else.

Ever been to Stinson Beach? Notice how many "No Dogs Allowed" signs are posted. I've never seen so many dogs on a beach.

If everyone in California spent as much time in productive work that they spend trying to get around the state's cumbersome laws, the state could be operating in the black, and they could afford to construct some good new roads, including much needed east-west arteries.

The Left loves complicated laws--the more and the more cumbersome, the better, because it makes graft and corruption easy.

The increase in tax revenues resulting from Bush's tax cut and pressure from the growing economies of India and China strengthen Forbes' argument; however, the Left remains the big problem and obstruction. Let's hope the American people see the wisdom of Forbes' advice and the foolishness of allowing the Left to weaken the economy any more than it already has.

[cynicom]

Forbes needs to quit writing when he is in his penthouse, the rarefied air is shorting out his brain.

[servantboy777]

I agree that the flat tax would not abolish the IRS. Only the Fair Tax could accomplish this goal. Part of the problem is the IRS. It is a huge engine that eats millions of tax dollars and in many cases deals with a heavy hand---that's contrary to our American values.

Fair Tax (National Sales Tax)would not only rid America of the IRS, it would capture billions from the underground economy. Criminals, Illegal aliens, tourist from other countries would pay into the system, thus increasing the tax base.

If you are in financial trouble for one reason or another, you could postpone paying percentages of your tax by scaling back on big ticket items until you become more financially sound. Your bank accounts, assets and so forth would never again be in jeopardy because of hard economic times. Think about it folks, when your down, the IRS comes along and kicks ya. Flat Tax would still require the IRS to collect on individuals or corporations attempting to avoid paying their fair share. Unfortunately, innocent people get caught up in the system.

[T.Smith]

You seriously need to read and understand a little about the Fair Tax before you attempt any further comment.

[Mind-numbed Robot]

I agree with you 100% on the Fair Tax. Since all objections have been overcome multiple times I am left to assume the feaux flat taxers are operatives for the status quo. Lots of them here.

[DeeOhGee]

I like the idea of a flat tax, and have no idea what am adequate rate would be. To me, though, if you want to sell the idea of tax reform to an apathetic audience, you eliminate payroll deductions and have workers write a check every month for their tax burden. There would be clamor for reform within three months, especially when those that actually have to pay taxes see those that do not. This would also lead to demands for shrinking the size of the government.