Problems with having a flat tax?

[StageLeft]

The problem is that for the tax revenue to stay where it is, most of the population would have a much higher tax burden than they do now. The poor hate the rich, but they totally and absolutely depend on them.

That 15% figure, for example, would be terribly inadequate to reach tax revenues we currently have.

 

[Squisher]

The notion is that so much of income is hidden by the present tax system that a true taxing at 15% would yield the same amount of revenue.

There is also a notion that once all income becomes out of the closet there would be a boom in investment and growth that the revenue would be recovered through this.

 

[upsciLLion]

Wow. This many posts and no mention of Russia yet?

See here.

That article illustrates how a flat tax can benefit a government and economy. Granted we are not in the same stage of economic development as Russia, I think the benefits of a flat tax would outweigh any disadvantages. It would close up a LOT of loopholes used by the rich and corporations, and also make them much more likely to be honest about paying their taxes.

 

[upsciLLion]

Bump for thoughts and discussion on the article I posted just above.

 

[Spencer278]

Originally posted by: upsciLLion
Wow. This many posts and no mention of Russia yet?

See here.

That article illustrates how a flat tax can benefit a government and economy. Granted we are not in the same stage of economic development as Russia, I think the benefits of a flat tax would outweigh any disadvantages. It would close up a LOT of loopholes used by the rich and corporations, and also make them much more likely to be honest about paying their taxes.

How would it close loop holes. OR in a flat tax scheme are corperations not going to be allowed deductions for capitial expensses?

 

[Zebo]

I pay way less than 13%, in fact I pay nothing but medicare not even SS. ^^^This sucks.

 

[upsciLLion]

Originally posted by: Spencer278

Originally posted by: upsciLLion
Wow. This many posts and no mention of Russia yet?

See here.

That article illustrates how a flat tax can benefit a government and economy. Granted we are not in the same stage of economic development as Russia, I think the benefits of a flat tax would outweigh any disadvantages. It would close up a LOT of loopholes used by the rich and corporations, and also make them much more likely to be honest about paying their taxes.

How would it close loop holes. OR in a flat tax scheme are corperations not going to be allowed deductions for capitial expensses?

The less rules lawyers/accountants have to play around with the harder it is for their clients to skip out on paying taxes.

 

[FuzzyBee]

Originally posted by: Valvoline6
Too many people out of work with a flat tax. The IRS, acountants, printers, software... etc.. What would they all do?

Exactly. That's the main reason neither it or a national sales tax (which I prefer, btw) won't happen for a loooooong time.

 

[crooked22]

Too many people out of work with a flat tax. The IRS, acountants, printers, software... etc.. What would they all do?

Didnt Bushito said there will be "help for you to go get an education. Here?s some help for you to go to a community college." ?

 

[her209]

If someone makes $1000 a month and get charged a 15% tax, he'd end up with $850. That's how much money he/she has to pay rent/mortgage, bills, etc.

Now, if someone is making $10000 a month and get charged a 15% tax, he'd end up with $8500. That's how much money he/she has to pay rent/mortgage, bills, etc.

(Assume these two persons live in the same city.)

 

[upsciLLion]

Originally posted by: FuzzyBee

Originally posted by: Valvoline6
Too many people out of work with a flat tax. The IRS, acountants, printers, software... etc.. What would they all do?

Exactly. That's the main reason neither it or a national sales tax (which I prefer, btw) won't happen for a loooooong time.

Accountants do a lot more than just taxes. Think of the tax dollars that would be saved if the IRS were downsized.

 

[XMan]

I believe the national sales tax plan exempts items such as food, so I don't think the impact on the lower classes would be much if any.

The Fair Tax plan also has some sort of complicated system that sends out rebate checks every month, it's at www.fairtax.org.

 

[FuzzyBee]

Originally posted by: upsciLLion

Originally posted by: FuzzyBee

Originally posted by: Valvoline6
Too many people out of work with a flat tax. The IRS, acountants, printers, software... etc.. What would they all do?

Exactly. That's the main reason neither it or a national sales tax (which I prefer, btw) won't happen for a loooooong time.

Accountants do a lot more than just taxes. Think of the tax dollars that would be saved if the IRS were downsized.

yeah, but then where would all of those people work? remember, they vote, too.

I'd love to see it happen, though. Don't want to pay a lot in taxes? Save your money!

 

[upsciLLion]

Originally posted by: FuzzyBee

Originally posted by: upsciLLion

Originally posted by: FuzzyBee

Originally posted by: Valvoline6
Too many people out of work with a flat tax. The IRS, acountants, printers, software... etc.. What would they all do?

Exactly. That's the main reason neither it or a national sales tax (which I prefer, btw) won't happen for a loooooong time.

Accountants do a lot more than just taxes. Think of the tax dollars that would be saved if the IRS were downsized.

yeah, but then where would all of those people work? remember, they vote, too.

I'd love to see it happen, though. Don't want to pay a lot in taxes? Save your money!

They do, but far more voters don't work for the IRS than do.

 

[Budarow]

Originally posted by: Hammer
this was already considered during the 90s. 15% isn't accurate. it would be closer to 27% which would be a lot more than people with lower incomes are paying now. that's why we won't have a flat tax. same problem with the idea of a national sales tax.

You are exactly correct...I believe this same conclusion was brought up during Bush Sr. term. 15% wouldn't cut it.

 

[miketheidiot]

Originally posted by: Genx87
Well a 15% flat tax would still probably be lower taxes than what most middle class people pay now.

But I believe the flat tax would be accompanied with a federal sales tax. The sales tax will end up getting the rich because they drop coin on high priced items and drop more coin in general.

They however "drop less of their coin" as a percentage of their income.

 

[miketheidiot]

Originally posted by: upsciLLion

Originally posted by: FuzzyBee

Originally posted by: upsciLLion

Originally posted by: FuzzyBee

Originally posted by: Valvoline6
Too many people out of work with a flat tax. The IRS, acountants, printers, software... etc.. What would they all do?

Exactly. That's the main reason neither it or a national sales tax (which I prefer, btw) won't happen for a loooooong time.

Accountants do a lot more than just taxes. Think of the tax dollars that would be saved if the IRS were downsized.

yeah, but then where would all of those people work? remember, they vote, too.

I'd love to see it happen, though. Don't want to pay a lot in taxes? Save your money!

They do, but far more voters don't work for the IRS than do.

I don't see how the IRS would go away... or how it could be signifigantly downsized.

 

[ElFenix]

Originally posted by: conjur
We need to close all loopholes for corporations so they start paying their share of taxes to ease the burden on individuals.

i think we should do exactly the opposite. have 0 taxes on businesses.

 

[miketheidiot]

Originally posted by: ElFenix

Originally posted by: conjur
We need to close all loopholes for corporations so they start paying their share of taxes to ease the burden on individuals.

i think we should do exactly the opposite. have 0 taxes on businesses.

I agree. Business profits/dividends should be VERY heavily taxed though, at least 70%

 

[ElFenix]

Originally posted by: miketheidiot

Originally posted by: ElFenix

Originally posted by: conjur
We need to close all loopholes for corporations so they start paying their share of taxes to ease the burden on individuals.

i think we should do exactly the opposite. have 0 taxes on businesses.

I agree. Business profits/dividends should be VERY heavily taxed though, at least 70%

well, i dunno about that, i was thinking at the normal personal income rates.

 

[FuzzyBee]

Originally posted by: miketheidiot

Originally posted by: ElFenix

Originally posted by: conjur
We need to close all loopholes for corporations so they start paying their share of taxes to ease the burden on individuals.

i think we should do exactly the opposite. have 0 taxes on businesses.

I agree. Business profits/dividends should be VERY heavily taxed though, at least 70%

Ahhh - reduce the incentive to make a profit.

 

[upsciLLion]

Originally posted by: FuzzyBee

Originally posted by: miketheidiot

Originally posted by: ElFenix

Originally posted by: conjur
We need to close all loopholes for corporations so they start paying their share of taxes to ease the burden on individuals.

i think we should do exactly the opposite. have 0 taxes on businesses.

I agree. Business profits/dividends should be VERY heavily taxed though, at least 70%

Ahhh - reduce the incentive to make a profit.

Better increase taxes even more after that to make up for the tax revenues that would be lost. :roll:

 

[Budarow]

Originally posted by: FuzzyBee

Originally posted by: miketheidiot

Originally posted by: ElFenix

Originally posted by: conjur
We need to close all loopholes for corporations so they start paying their share of taxes to ease the burden on individuals.

i think we should do exactly the opposite. have 0 taxes on businesses.

I agree. Business profits/dividends should be VERY heavily taxed though, at least 70%

Ahhh - reduce the incentive to make a profit.

If business owners want to give up their position as "business owners" and switch roles/salaries with their factory line workers...go for it!

 

[lordtyranus]

Originally posted by: miketheidiot

Originally posted by: ElFenix

Originally posted by: conjur
We need to close all loopholes for corporations so they start paying their share of taxes to ease the burden on individuals.

i think we should do exactly the opposite. have 0 taxes on businesses.

I agree. Business profits/dividends should be VERY heavily taxed though, at least 70%

WTF? Who's going to invest, then?

The normal income levels are fine.

 

[FuzzyBee]

Originally posted by: Budarow

Originally posted by: FuzzyBee

Originally posted by: miketheidiot

Originally posted by: ElFenix

Originally posted by: conjur
We need to close all loopholes for corporations so they start paying their share of taxes to ease the burden on individuals.

i think we should do exactly the opposite. have 0 taxes on businesses.

I agree. Business profits/dividends should be VERY heavily taxed though, at least 70%

Ahhh - reduce the incentive to make a profit.

If business owners want to give up their position as "business owners" and switch roles/salaries with their factory line workers...go for it!

Do you not realize that most "business owners" are stockholders and don't make a salary?