10% U.S. Flat Tax Accross the Board!

[Independent]

Why, or why not?




Indy

[Grumpy]

I would probably be in favor of it but doubt we will ever see it happen..

[Independent]

Yeah, you're right, it's probably not complicated enough.



And what the hell would we do with all those unemployed IRS agents and tax accountants?






Indy

[wintermuted]

The current tax code is an abomination, no question, that could do with a thorough streamlining.

I dislike arguments for a flat tax that frame it in terms of simplifying the tax code as if it was the most important result of the change.

I believe that the "flat" tax is actually a benefit to the wealthy. Think of a person paying $2400 of their $24000 yearly salary and a person paying $24000 of their $240000 salary. Which one is more burdoned by this new "simple and fair" taxation scheme?

Tax them who can afford it.

[Independent]

Originally Posted by wintermuted

I believe that the "flat" tax is actually a benefit to the wealthy. Think of a person paying $2400 of their $24000 yearly salary and a person paying $24000 of their $240000 salary. Which one is more burdoned by this new "simple and fair" taxation scheme?

In your example, I guess I'm failing to see when both parties pay 10% that it favors the rich?

Can someone else clue me in here?





Indy

[wintermuted]

Originally Posted by Independent

In your example, I guess I'm failing to see when both parties pay 10% that it favors the rich?

Can someone else clue me in here?

Let me elaborate, Indy.

When you're barely getting by, every dollar counts for things like housing, food, healthcare, insurance, car, gasoline, etc.

For somebody making $24000 a year, $2400 isn't just a significant chunk of change, it's a difference in their quality of life.

For the person making $240000 a year, the $24000 is an inconvenience. Furthermore, this person could be charged even more without putting too serious a crimp on their lifestyle. Charging them $30000 not only wouldn't really put the hurt on them, but it would pay for lower taxes on several people making $24000 - people for whom paying, say, 7% instead of 10% might make a big difference.

[kretinus]

Originally Posted by wintermuted

...I believe that the "flat" tax is actually a benefit to the wealthy. Think of a person paying $2400 of their $24000 yearly salary and a person paying $24000 of their $240000 salary. Which one is more burdoned by this new "simple and fair" taxation scheme? Tax them who can afford it.

The flat tax is the simplest, fairest proposal out there, the idea that someone should pay a higher percentage just because they make more is ludicrous.

[wintermuted]

Originally Posted by kretinus

The flat tax is the simplest, fairest proposal out there, the idea that someone should pay a higher percentage just because they make more is ludicrous.

It's the simplest plan out there, I'll give you that.

I've outlined above why I think its fairness is in doubt. Adam Smith presented the idea nicely in 1789 in The Wealth of Nations:

The necessaries of life occasion the great expense of the poor. They find it difficult to get food, and the greater part of their little revenue is spent in getting it. The luxuries and vanities of life occasion the principal expense of the rich, and a magnificent house embellishes and sets off to the best advantage all the other luxuries and vanities which they possess. A tax upon house-rents, therefore, would in general fall heaviest upon the rich; and in this sort of inequality there would not, perhaps, be anything very unreasonable. It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion.

You can feel free to disagree with me, but I think dismissing my point as "ludicrous" is shortsighted - especially as this philosophy is the bedrock of our current tax code.

[noonereal]

Originally Posted by Grumpy

I would probably be in favor of it but doubt we will ever see it happen..

I totally agree. It is ashame that there is so much money in keeping all the loopholes in the tax code. I wonder how many the current convoluted tax code causes employment for? Anyone know?

[merrylander]

Originally Posted by noonereal

I totally agree. It is ashame that there is so much money in keeping all the loopholes in the tax code. I wonder how many the current convoluted tax code causes employment for? Anyone know?

Sure, tax accountants! Never could figure out the damned 1040, never mind all the Supplements.