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

[finnbow]

Originally Posted by whell

A flat tax cannot become a reality without a total overhaul of the ENTIRE tax code. A flat tax is a populist idea that, while it has some merit, only addresses taxes on income. IMHO, nuke the ENTIRE tax code and start over.

Get rid of taxes on capital formation and appreciation. Capital is the life blood of of a capitalist economy. Tax it, and you keep the economic throttle choked. If you want to increase the value of labor, increase the value and reward associated with the conversion of capital into goods or services.

Get rid of corporate taxes. Replace corporate taxes with taxes on consumption of any good or service, including any industrial goods and services. Get rid of income taxes in their current form and replace them with either a flat tax on income or a flat tax on and individual or joint filer's net worth.

Get rid of the Social Security and Medicare System and give up to a dollar for dollar tax credit up to 20% of an individual's income into a medical savings account, which can accumulate funds with the same tax treatment as a Roth IRA. If an individual's employer wants to contribute, they can do so in lieu of paying medical insurance premiums. OK, if we can't get rid of Medicare and / or SS right away, they can be phased out over time.

This is just a start.

All are very interesting ideas, none of which have a chance in our current political environment (unfortunately). Congress will never give up the ability to reward their own constituents through favorable tax treatment (and the kickbacks euphemistically called "campaign contributions" which are thereby financed). Sucks, don't it?