Cottage industry? It isn't the average taxpayer who lobbies to get those tax laws and special exemptions. It's businesses and the wealthy. They're going to fight your proposition tooth and nail, as will the 47% of the population who will see their taxes go up considerably under your plan.
Oh, and I think there is a zero chance for meaningful tax reform.
Love it. I have argued for this for years. No need for any deductions if everyone pays and the rate is low. I oppose the Fair Tax because a) it begins with a subsidy to “low-income Americans.” Screw that. and, b) it turns businessmen into tax collectors. Government should always be the tax collector so that if taxes go up, people hate government, not business.
Capital gains need to be indexed to the inflation of their asset class, year by year.
So we should pay taxes on taxes?
No thanks.
Obama would prefer: no taxes on 10k per person and 100% on all income above 100k
Great idea, but 10% is way too high.
That is not a solution that even attempts to fix nastiest parts of the tax mess.
Ergot, it’s time will never come.
It would have to be about 17% at current spending levels. 10% won’t generate enough revenue.
This is lawyerphobic and unfair to lobbyists and the congressmen so oppressed by being forced - forced I tell you - to take kickbacks, bribes and sweet corporate jobs after serving.
And what about the families? The husbands, wives and cousins who all get the insider deals?
Thoughtless, hurtful, and hate-filled.
(/s)
The “Fair Tax” has a lot of good ideas, However the “Prebate” Must go. We do not need the IRS sending out checks to the people not working or a some very low paying job.
Bottom line: NO IRS!!!
Yes a 10% tax on gross income.
So if you make $100K and spend $120K to do so, you still pay $10K in taxes.
Stupid.
Should we make peace and wave offerings too?
I’m for it, provided tax day is changed from April 15 to the first Tuesday in November and declare that day a holiday.
For the case of churches and non-profits, as long as they spend their donations that same year on their proper activities, then there will be no profit to tax. There would just be tax on increase in endowment funds.
This is politically infeasible: the definition of income must include deducting costs from revenues (if it doesn’t, this proposal is even more destructive of small business than the current tax regime), and that already opens the door to deductions, since the nuances of what costs are really costs of generating income will become a political football and a lot of the electorate will see businesses and business owners as still getting “deductions” while theirs have evaporated.
The destruction wrought on non-state civil society by the abolition of the charitable contribution deduction is also not to be discounted.
All those exemptions are unfair to the rest of us. I’m being penalized for paying off my mortgage early and staying on budget not owing anyone. Why should I have to foot the bill for wining, dining and hiring the after dinner evening entertainment for supposed “business”, wink-wink, expenses? I have to disagree with death taxes as they’ve already been taxed.
This is written by someone who must never have owned or probably even worked at a management (see how it works) level in any kind of business. Applying these ideas to the Individual income tax is fine but applying a Gross (not net) income tax to business would destroy millions of US businesses and 10s of millions of jobs. This idea sounds like the typical pap that liberals spout about business. Millions of US businesses operate with net profits well under 10% of their gross income. You are basically saying to these businesses that they are finished and you will wipe them out. Applying some kind of flat tax to everyone is great idea. Everyone paying taxes is a great idea. But his understanding of how business works and how you tax it is childish. You can’t deduct payroll?? Absolutely ignorant.
Does the 10% replace just the income tax or FICA too? If the second I would be dancing in the streets. Also does the tax on “ stock sales” cover tge gross or the net capital gains?
The term “income tax” is not accurate. It is in reality a tax on labor and/or creativity.
the current tax system is the one that both parties prefer. It is riddled with special crony favors for those who donate to keep them in power. To think it will be replaced with a better policy or an easier policy or a policy that is competitive on a world basis, is unrealistic. They will not vote to give up their money machine.