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| *Loan,banking and credit>>>income tax |
Whats wrong with flat tax? every american should pay 10% reguardless of income!? |
I think a flat tax is as fair as it gets, doesnt matter if u make 1,000,000 a yr or 12,000 its in no way shape or form the gov. job to play robin hood. the excuse that it hurts the poor is a bunch of B.S. with a simple tax code and flat tax everyone would benifit. Is it the socialist take from the rich give to the poor mentality that keeps this from happening. The way i see it the rich dont pay taxes and the middle class have to pick up the slack as well as give to the poor. The so-called flat tax has many drawbacks, not the least of which is, such a system lacks the mechanisms by which an economy can be stimulated when needed. It is the national interest to provide economic stimuli to certain parts of the economy. This means, of course, that while giving tax breaks to selected economic sectors may seem unfair, the reality is quite the opposite: everyone benefits from a dynamic economy, capable of providing all the goods and services the public desires and needs. To cite one very touchy example--oil company tax breaks and subsidies. Crude oil is not like any other commodity. You can't plant a field of crude oil as you would corn or soybeans. It is non-renewable resource. For this reason, as oil is pumped from the earth, oil producers are able to offset part of their profits due to what's called a "depletion allowance." This is what keeps the oil flowing. Another example can be seen in the housing market: Can you imagine how many millions of people would lose their homes if they were not allowed to deduct home mortage interest. The "flat tax" would still need to generate as much revenue as the present system, so there would be no savings realized from which the loss of the home mortgage interest deduction could be offset. Imagine, if you will, what the effects of a flat-tax would be on the stock markets. Without capital gain treatment, an important incentive for taking the risk of investing in "securities" (what a word!---it should be "insecurities") would be lost and people would be unwilling to invest in any area where money could be lost. Under the flat-tax, there would be no deduction for losses of any kind. These are just a few of the many hundreds of reasons militating against a change to a flat tax. It sounds pretty good to me,but the one thing I would worry about is the 10% changing to 20% ,30% 40% and so on; also I think the flat tax proposal that was on the table would start at 15%. Well, let's take someone making $10k a year right now. They pay less than $200 in Federal income tax and barely survive at that rate. A flat tax would raise their tax bill 5-fold to $1,000. Are you really that cold-hearted or selfish that that sounds equitable to you? What's more, a 10% flat tax wouldn't raise anything near what the current graduated tax does. It would have to be closer to 25% to 27%. Now that poor bastard earning $10k a year has to pay $2,500. And he winds up on the street because of your "fair" tax. Try crunching the numbers using your own tax return. Don't waste your time with 10%, though. Use 25%. If you're like most folks, you'll pay MUCH more tax with a 25% flat tax than you currently pay now. Let's say you're lucky enough to earn $70k a year. Your Federal Income tax would be around $12k under the current system. With a 25% flat tax, you'd pay over $17k. Not such a hot idea, is it. There's a good reason that wealthy folks like Stever Forbes love the prospect of a flat tax. THEY will save a TON of $$$. But the average working stiff taxpayer will pay a LOT more. I dare you to post your complete financial details here -- all income AND tax preference items like health insurance, 401(k) contributions, itemized deductions, etc. and PROVE that a 25% flat tax is a good idea. Of course, you won't, because you are either blowing smoke or are simply uninformed. What makes you think the rich don't pay taxes? The people in the top 25% of earnings pay more in taxes than the other 75% combined. The people with incomes in the top 10% pay 48.5% of the total individual income taxes collected by the government! I made close to $1.2 million last year. In income taxes alone, I paid approximately $350,000. Since you say I don't pay income taxes, would you send me a check for that $350,000? BTW, unlike some fairly well-off people, I actually prefer to pay my fair share of income taxes. However, go ahead and get the flat tax or fair tax passed, I'll be pocketing a lot more under either plan. Since the rich like me will be keeping more, where is the extra supposed to come from? Well, first of all 10% isn't anywhere near enough to cover the services currently being provided it would have to be more than double that. Your proposal would cost the poor more than today, and would do nothing to tax the cheaters working under the table. Your assumption that the rich don't pay taxes is flat-out wrong - the top 50% in income pay over 94% of income taxes, and the top 5% pay over half of the income taxes collected. I agree completely! |
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