vs. Trump. ;-)
Posted on 09/15/2015 9:59:37 PM PDT by entropy12
“But if everyone DID pay less, that leaves an even bigger deficit - unless spending is cut. Anyone want to bet on that?”
I do not think that that would be true if it is a flat tax on the gross regardless of deductions.
The center piece of Trump tax plan is simplification. Flat tax systems have very few deductions, so you would not need to run to HR Block for your tax return.
Exactly! A flat tax retires most lobbyists and special interest pushers will be out of business.
Bingo! Those making livings in the tax industry just add more tax to those who can least afford it!
Even a simple tax return preparation can cost you a bunch of money at HR Block. With Trump’s plan, a post card size paper will be enough.
That was back when the debt was about that much.
Hasn’t touched that in years now.
“But if everyone DID pay less, that leaves an even bigger deficit - unless spending is cut. Anyone want to bet on that?”
Assuming this is the same plan he has been speaking about that has been now written down.
He is cutting rates but closing loop-holes and deductions
Most wealthy people don’t pay an actual 15% now but use various legal tricks and deductions to bring the marginal rate down. The idea is that by reducing paper work a wealthy guy or business would pay more taxes but make up the difference on not having to pay an accountant money to do the tax filing.
Most people would probably pay more under a plan like this but once again how much would you pay to never have to fear an IRS audit?
This is how the Hong Kong tax system works. I paid more there but minded it less because of the lack of hassle. The tax form I used was the same one that Li Kaishing (The wealthiest man in HK and 10th wealthiest in the world) used. It was also the same one my Sister-in-Law used to report taxes on her $800 USD per month job.
Also if the rate is clear and low it encourages people to move money OUT of tax exempt vehicles and into higher paying taxable one - Thus raising tax revenue
Lastly and this is the biggie a plan like this would mean the IRS could lay off 3/4 or more of its personnel because compliance would be straight forward.
vs. Trump. ;-)
Income “should” be simple:
Money you get.
Working, dividends, interest, unemployment, pensions, etc.
We spend so much time and energy “defining” things to avoid calling it what it is.
To be fully transparent about my philosophy, the income tax needs to be abolished totally. Funds for a drastically small government would come solely from a consumption tax, thus giving the consumer the means to fully control what he pays to the central government.
A commie clown am I?
It’s still a tax plan that punishes success. Something we Conservatives have been screaming about forever.
I don’t want any Tax plan that retains the use of the IRS.
So that makes me a commie clown, huh?
I like the concept, but will it bring in enough? I thought break even was something like 17%.
Look at it this way. A family making $30,000 would have to pay $3000 with a 10% tax. That is a huge burden on that family.
Where as if you make $100,000, $5000 is NOT a huge burden.
If you make $500,000 then your lifestyle will not crumble with a $50,000 tax bill.
I think 4 tax brackets with a flat tax makes good sense.
FICA is not an income tax. That won’t go anyway but up.
GMTA FRiend! See my post in the thread making the same point although I plucked the number of 5% out of thin air. Maybe we can average our theoretical values and make it an even 7%?
IRS becomes irrelevant with a simplified flat tax rate system. There are no deductions for them to audit.
You will always need a government department to COLLECT taxes no matter what system is used. Even in the consumption based fair tax, somebody has to make sure the sellers are paying proper amount of tax and collect it.
Hah, well to be perfectly honest with you, I am for dismantling the entire federal government.
Just gone. Every, last bit of the damned thing. It’s way more trouble than it’s worth.
But I’m pretty radical on that, I don’t imagine that any sane person would agree with me.
I will settle for what I can get I suppose.
FAIR Tax.
As long as there is ANY Income Tax, no matter how low, no matter how flat, no matter how simple, the punitive, “PROGRESSIVE” income tax will COME BACK. Because BOTH Democrats and Republicans know they can buy votes by stirring up ENVY.
No. We were better off with no income tax at all. Do you know what the purpose of Free Republic is? Read it on its home page, then get back to me.....
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