What do you think about flat tax?

[spyordie007]

<< Flat tax is a bad bad idea.

Now, a nation wide sales tax on everything is the way to go.

You don't tax people on how much they make, you tax on how much they spend! >>


The problem with that is that it's too "visable" you see your money comming out of your hands to easily that way, and if all our tax money came that way nobody would want to buy anything.
I can imagine the headlines on hot deals, GF3 for $100! only $200 after tax and shipping!
The "easy" thing about taxing people before they get paid (by easy I mean for uncle Sam) is that the unsuspecting taxpayers dont see the money slipping through their fingers as easily.

 

[Cerebus451]

<< No, that's not what I'm saying, I said "discourages" not "makes people stop"
And to be honest there are people I know that are close to large increases (bracket creep) and they set up their earnings for the year so they they stay under by altering their finances for the year (taking bonus's in forms other than cash, and here is a big one - buying a new house so the interest will be tax deductable so it offset's their income).

the short answer is that "discourages" does not mean something as extreme as "quit your job" >>


I'm sorry, but restructuring your earnings to fall into a lower tax bracket is in no means "discouraging" anything. It's being creative with the tax laws. Those people were still interested in earning as much money as they could, and by no means did they stop trying to be capitalistic (or even slow down their capitalism) just because they were approaching a new tax bracket. Your example of buying a house is even an example of how the tax brackets actually encouraged capitalism, as the people put money into the economy (buying the house) just to avoid getting put into a higher tax bracket.

 

[Sluggo]

<< Also if at $100k vs. $99k you enter a higher tax bracket you still take more money home. Some people seem to believe that a tax bracket is a set percentage on your entire income but it's not. Your first $8k(?) isn't taxed, then the next 20k at a certain rate, the next 20k at a certain rate, etc. so if you pay 30% making $99k and your tax bracket is now 80% when you make $100k you pay 30% on the first $99k and 80% on the next thousand. THis is hwo taxes work. Your taxes on capital gains ARE taxed at the high tax bracket though...so there can sometimes be times when it's worth donating to a charity to tip you just under the next tax rung or whatever, but for most people this isn't really something they should worry about. >>



One of the screwiest parts of the current system is this.

Say my wife makes $30,000 a year, and I make $75,000 per year. If we file jointly, by default, ALL of her income is automatically taxed at MY higher tax bracket.

How in the world is this possibly fair?

 

[desy]

Flat tax is a lot more "fair" than the current progressive tax system .
Those who live below poverty levels don't pay tax, everybody else does and flat tax is the way to do it.
Yes the rich pay more but they still get way more disposable income than they do with the progressive tax system we have now.
Taxes are necessary they build the schools, roads, hospitals, pays for defence, foreign aid, domestic disasters and so on.
If you don't think you can pull enough money out of a flat tax system then ask yourself do we actually need all of the government that exists?
They can get by on quite a bit less, I know I work for the gov't.
Me and a co-worker figured out our engineers here wasted about $1500 in wages for a "media response" to a conference they were running.
Lets see no media asked any questions so kiss all those man hrs goodbye. . .

 

[Cerebus451]

<< Say my wife makes $30,000 a year, and I make $75,000 per year. If we file jointly, by default, ALL of her income is automatically taxed at MY higher tax bracket.

How in the world is this possibly fair? >>


Because you are not required to file jointly. You can file separately to avoid that, and have fun doing all the extra work filling out all the extra forms, causing more work for the IRS to have to track 2 returns, causing the government to spend more money and raise taxes. Seems perfectly logical to me, but then again I'm not married.

Of course, before anyone complains about taxes here, just ask any of our European friends in countries with socialized health care systems and the like how they feel about taxes.

 

[charrison]

Cerebus451,

You dont get a break by filing seperatly if married.

This tax system will not make a single person quit their job, but it can make a dual income family go to a single income. The second income gets taxed at the highest rate, if not a higher one. Once you go to a single income, you pick up a deduction. Add a smaller house pick up a deduction. Add some kids, pick up a deducation. All the sudden you are not paying much tax at all, but enjoying the full benefit of the other tax payers.


It takes money to hold a job and if the govt is going to be taking 30% right off the top, the reason to work is greatly dimished. Add in transportation,other work related expenses, childcare if you have kids.....

 

[Spoooon]

<< We currently have the majority poor voting how the govt moneys get spent. Soon the poor will vote everything away from the rich..and then there will be no rich to steal from. >>

can we say slippery slope?

 

[Rob9874]

<< Rich people get taxed a higher percentage, but they deserve to. If a person who makes 10 million a year is taxed 45%, they can still afford to live very well... >>



This is the asinine Liberal logic that keeps tax laws in place that continue to punish the successful. Regardless if they can live comfortably at that tax rate, IT'S THEIR MONEY! Did you ever think of that? They earned it. Here's an idea: Why not let everyone have $30,000 to live on. If you make more than that, you have to give it to the gov't. If you make less, the govt' gives to you. That way, everyone makes the same, and everyone is fair and equal. Hello Karl Marx!!!! The great thing about this country is that each person is free to reach their potential, and reap the rewards of that potential. The flaw is that the more successful you are, the greater you are penalized by the government. If I make a million dollars a year, I want the million that I earned. I don't want to give $900,000 to the government, even though I can live quite comfortably on $100,000. Why can't people keep what is rightfully theirs?

Yes, I realize we have to pay taxes to pay for public facilities. But we can make it more fair, and cut some of our frivolous spending. I know how the govenment can save $100 million right here.

 

[etech]

Piano Man
etech, I've never thought of that. That X amount that is non-taxable seems like a really good way to help keep the poor from getting screwed, which is what a normal flat tax would do.

And it's from a conservative Republican at that. OMG the world must be ending!