Is the Flat Tax the fairest system for everyone?

[FreakMonster]

Under the flat tax, a person earning $3.5 million would pay 10 times more than someone earning $350,000, who would pay 10 times more than someone earning $35,000. That's fair and progressive enough, as far as most Americans are concerned.

The public clearly supports tax simplification. The question is whether the administration will push the political envelope and com out in support of a flat tax system, or settle for mere marginal improvements.

 

[Badkins21]

Until a pseudo-pure Capitalist is elected President of this great nation, the wealthy in this country will continue to finance it--and the poor, and the lazy, (and those that just DON'T pay taxes) will continue to reap the benefits of our semi-Socialist economy.

Can we guess which sort of tax "system" I support?!

I hope ol' Stevey Forbes will run again, if for nothing other than to make a few more people see the light regarding this important issue!!

 

[manny78]

Dunno about your system but here taxes are progressive up to a specific number (something like 150 000$). Then its flat. I think its fair enough. I would rather like to see my taxes lowered.

 

[Badkins21]

Manny...if you make any decent amount of money, your taxes would be "lower" under a flat tax--see, there's a penalty for being successful here. The more you make, the larger percentage THEY TAKE (take = steal...loot...etc.)

 

[manny78]

Manny...if you make any decent amount of money, your taxes would be "lower" under a flat tax--see, there's a penalty for being successful here. The more you make, the larger percentage THEY TAKE (take = steal...loot...etc.)

dont worry, I realized that recently when preparing my income taxes report lol

 

[The Dude]

Actually, it would more "fair" as described by the progressive tax system supporters. Under a flat tax system, more people wouldn't pay federal income taxes. A flat tax system would also have fewer loopholes so it is very concievable that wealthier citizens would pay more. But it would be fair because there would be no penalty for success and fewer loopholes that only really make a difference when one is very successful financially. I know that sounds duplicitous, but, as funny as it may seem, the flat tax system really does address both angles. It would makes things simple and better for everyone in the long run.

 

[mrbill]

best system would be a national sales tax, not a flat tax. All a flat tax does is flatten the tax rates, it doesn't fundamentally change the system, just the rate structure. The IRS would still exist, as would audits, complexity of the tax code, tax evasion, etc. A sales tax system would eliminate all of this. However with all this said I hope the tax system gets even more confusing than it is as I am a CPA (well soon to be ) and may very well be working in taxation for awhile...if I don't land an investment banking position.

 

[MattTheSkywalker]

Flat tax is the only fair tax. The progressive tax is just so ridiculous. Even people in relatively modest incomes are paying too much.

Bush dropped the top bracket to 33% one-third of your income and people are bitching that he is catering to the wealthy. The bottom line is, the system is inherently unfair.

 

[bigguns7]

best system would be a national sales tax, not a flat tax. All a flat tax does is flatten the tax rates, it doesn't fundamentally change the system, just the rate structure. The IRS would still exist, as would audits, complexity of the tax code, tax evasion, etc. A sales tax system would eliminate all of this. However with all this said I hope the tax system gets even more confusing than it is as I am a CPA (well soon to be ) and may very well be working in taxation for awhile...if I don't land an investment banking position.

A national sales tax would make poor people that much poorer.

 

[javaguru]

There are still problems with a flat tax system, especially in regards to lower incomes. Giving the government 10% of your income hurts someone that makes $18,000.00 per year more than someone that makes $40,000.00 per year. There is a basic level of retainable income one needs to have basic necessities and that's where our progressive wealth redistribution system comes into play. There would still have to be an arbitrary point where one pays no or little taxes which just turn it back into a progressive system. Also, the deduction system encourages certain behaviors that we as a society value and also act as a way of influencing economic policy. While I certainly agree the current system needs to be much simpler and I hate paying a high percentage of my income as taxes a simple flat system or sales tax system isn't a panacea.