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

[soundhound]

a single person earning $24,000 a year, at a flat 10%, would pay $2,400 in federal income tax. however, that same person, with the current standard deduction of $8,900, would have a taxable income of $15,100 and pay $1,510 in income tax.

under our current system, that same person earning $24,000, claiming the standard deduction, and filing as "single", now pays $1,868 in income taxes.

with the 10% flat tax, keeping the standard deduction, that person would pay less federal income tax.

10%, with no deductions, would hurt low-income people severely!

a single person earning $100,000, at a flat 10%, would pay $10,000 in federal income tax. with the current standard deduction, that person would have a taxable income of $91,100 and pay $9,110 in federal income tax.

under the current system, the 100k earner, with the standard deduction would pay $19,493 in federal income tax. so, all other things being equal, that person would be better off by far paying the flat tax.

of course, all things are not equal. the problem with our current system is that there are too many deductions! therefore the wealthy are able to "shelter" their income. that is why the richest people generally pay the least percentage-wise in taxes.

we should keep the current system, with modifications. the percentage of income tax paid should increase as income increases. what we need to do is get rid of all the "shelters".

the standard deduction needs to be raised so that people with poverty level incomes are not taxed at all, or at least very little, and there should be "excessive wealth" taxes imposed on people whose income places them above the "middle class" income level.

[soundhound]

Originally Posted by Independent

Doesn't everyone in this country, outside of inheritence (I don't count this because I certainly won't inherit anything), start out with the same opportunities as anybody else? So, because I work harder, or the right opportunities fall my way, or I win the lottery, I'm supposed to share what I have, over-and-above a proportionate tax, to someone who might not be as motivated, or as lucky as I am? That should be my choice to do, not mandated.

unfortunately, we are NOT all created equals. the income level of your parents plays a tremendous role in your ability to get ahead financially. genetics plays a very important role also. some people are just not smart enough to become doctors or lawyers, no matter how hard they work. and "the right opportunities falling your way" is pure luck. some have it, some don't.

what you are implying is that a person born to poor parents, in a poor neighborhood, who attends a low-performing school, is of average or below intelligence and appearance (also plays a tremendous role in success), and is not very fortunate otherwise, should have to pay more (or at least the same)in taxes that you do.

winning the lottery or any other such windfalls is an exception to the rule, not the rule.

[soundhound]

Originally Posted by Independent

there are plenty of people out there who would love to make $24,000 a year, and would live a happy life if they did.

try it.

no, money doesn't buy happiness, but poverty sucks.

[Independent]

Hey, this is simple people, why complicate it. EVERYONE pays 10% federal income tax, NO other exemptions need apply. Nothing to hide behind. Period. Simple.

This is the same problem with Washington and Politicians in general. They complicate things where there should be no complications. Let's all just keep coming up with reasons why we think something won't work, so nothing will ever get done. I guess we all just showed everybody how the two-party system works. Brilliant.




Indy

[Independent]

Originally Posted by soundhound

try it.

no, money doesn't buy happiness, but poverty sucks.

I'm doing it right now....

Now you try it and maybe you can be happy too. Oh, and guess what, $24,000 a year is NOT poverty.




Indy

[spok]

I would be in favor of a flat tax but the word I hear is that 10% would not be enough. It would most likely be in the range of 14-17%

[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?

[noonereal]

Originally Posted by Independent

Basically what is being advocated here is Socialism, is it not?

Doesn't everyone in this country, outside of inheritance (I don't count this because I certainly won't inherit anything), start out with the same opportunities as anybody else?

No socialism is much different than what is being advocated here. I believe the poster is referring to a socially responsible sociaty as the people who earn more can afford to pay more and a health sociaty benefits all.


People absolutely do not have the same opportunities. Never have never will. Honest, why would you even think this is true?

[wintermuted]

Originally Posted by Independent

Hey, this is simple people, why complicate it. EVERYONE pays 10% federal income tax, NO other exemptions need apply. Nothing to hide behind. Period. Simple.

This is the same problem with Washington and Politicians in general. They complicate things where there should be no complications. Let's all just keep coming up with reasons why we think something won't work, so nothing will ever get done. I guess we all just showed everybody how the two-party system works. Brilliant.

I guess simple solutions satisfy simple minds.

[Independent]

Originally Posted by spok

I would be in favor of a flat tax but the word I hear is that 10% would not be enough. It would most likely be in the range of 14-17%

Okay then, 15%, whatever works. Simple.




Indy