It sounds great.... for people like myself that actually pay income tax. The problem is there are a lot of folks that already pay nothing because of their low tax bracket and things like the child tax credit.
So you can already hear the dems...it’s a tax break for the rich while the poor will end up paying more in higher costs of goods.
The tax code is so convoluted, (intentionally), that proclaiming something as simple as ‘no more income tax’ is actually not that simple...and let’s face it, we will all pay somehow. Dealing with the debt and taxes is just moving furniture around on the titanic until SPENDING STOPS.
A flat tax might be best but what do you do with tax credits, mortgage deductions, etc.
I’m curious if anyone has run the numbers on what kind of tariffs would be needed to offset all income tax. They would have to be huge.
1. “A flat tax might be best but what do you do with tax credits, mortgage deductions, etc.” In my proposal, as I said, they’d ALL be eliminated - UNIVERSAL and ZERO deductions, exclusions, exemptions or credits.
2. I realize that to get it through any Congress, I would have to give up on some of the purity of the idea, and (in as much I’d also be eliminating ALL “tax credits” of any kind, I’d likely have to accept an income floor below which the flat tax itself would not apply.
3. Even so, a universal flat tax with no deductions, exemptions, exclusions or credits would be so massively broad based I’d expect the rate itelf may neeed to be no more than 10%.