Posted on 09/12/2010 10:38:47 AM PDT by WOBBLY BOB
Federal tax policies lie at the core of ongoing arguments between the two major political parties. Unfortunately, this debate focuses on only one issue, marginal tax rates for individual income taxes. It ignores the equally important issues of what should go into the "tax base" and what loopholes should be allowed. It is too bad we have forgotten the experience of the Reagan era, when all of these issues were on the table. But no elected officials seem to have the leadership ability or political courage to broaden the debate.
The Reagan administration brought about the most fundamental changes in U.S. federal tax policy in the past 70 years. The changes generally followed the dual prescriptions of supply-side economists, to lower tax rates and broaden the tax base. "Broadening the base" meant closing myriad loopholes and thus making more income subject to taxation, both for corporations and for individuals.
Tax rates were higher back then. The top marginal rate for individuals was 70 percent when Reagan took office, down somewhat from the 90 percent rates in effect from World War II until after John F. Kennedy's death. Reagan's first tax bill lowered that to 50 percent and then to 28 percent in the last year of his administration.
That lowering of tax rates is what has remained in the public mind. Nearly forgotten is the fact that other legislation advanced by the Reagan administration closed numerous loopholes, most of which favored high-income taxpayers.
(Excerpt) Read more at twincities.com ...
I favor something where EVERYONE pays, that would be one option, but I prefer the flat tax.
Fair Tax !!
HR 25 S 296
http://www.tuccille.com/blog/2008/05/hausers-law-laffer-curve-and-pissed-off.html
Thursday, May 22, 2008
Hauser’s law, the Laffer curve and pissed-off taxpayers
Can governments collect as much tax revenue as they they think they need simply by tweaking tax rates? Or was Arthur Laffer correct when he said that raising rates beyond a certain average level causes revenue to actually fall
We should be taxed on consumption...not production...that would be fair as those who consume more pay more...those who conserve would be rewarded...production (capitalism) would be encouraged...the huge inefficiency of the (self licking ice-cream cone) IRS would be eliminated...the fall out of good things just goes on and on...fewer lawyers and attornies...fewer regulations and courts tied up in “white collar crime”...more resources for real criminal activity...etc, etc
Get THAT one passed in the House and Senate and we would experience the 8th wonder.
Flat Tax...yeah sure that will work NOT.
Like you, when I was a tax newbie I was receptive to a Flat Tax, until I studied tax history.
Did you ever study tax history?
Do you understand that your Flat Tax will never stay flat? Why? Read on.
Are you aware of a little thing called the 16th Amendment to the US Constitution?
Do you realize it is an amendment and not merely a law?
Do you understand that the Flat Tax is an Income tax that would be illegal if the 16th Amendment did not exist or were repealed?
Let me say that again, the Flat Tax is an Income tax, and it can only exist so long as the 16th Amendment exists.
NOW here is the history:
The original US Income Tax Code following the ratification of the 16th Amendment was 14 pages long and was a FLAT TAX.
Let’s say it again, the original Income tax was a FLAT TAX.
So what happened?
First, let’s be reminded of a few more facts:
THERE HAVE BEEN FIVE MAJOR TAX REFORMS SINCE THE ORIGINAL 1913 FLAT INCOME TAX CODE, EACH REFORM MADE THE US TAX CODE ‘FLATTER’, SIMPLER, LESS ONEROUS.
What happened is the 16th Amendment is a defacto business license for tax lobbyists to set up a bribe and pay tax gaming industry. It is a Consitutional permit for political corruption.
The 16th Amendment is a cancer that metastacizes and creates an outcry for treatment (Tax Reform). Like chemo and radiation therapy, the cancer is killed and shrunk but is never cured. It always comes back with a vengeance.
Your Flat Tax in any form will never work because it requires the 16th Amendment for it to be legal, and the 16th Amendment always allows a Flat Tax scheme to unravel into tax insanity.
Why didn’t the American people leading up to 1913 understand the tax cancer they were creating? Because they were duped. The tax cancer started with a mild 1% on all American income earners with a 7% rate on the wealthiest 2% of Americans. It seemed mild, reasonable and easier to comply with. The 16th Amendment was a trojan horse for socialism.
NOW HERE IS THE CURE:
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