Flat Tax Anyone?

[SAYIT]

With another exciting tax season nearly behind me it's time to drag out my solution to the time and expense required to pay the gov't their "fair" share of my earnings.
I understand the corporate side of my misery is unavoidable but we can do away with all the razzmatazz, including the attornies and accountants (necessary to keep me out of tax prison) as well as the time and stress connected to the personal filing.
We can do this in a way that is fair to all if we try and the only losers would be the aforementioned attornies and accountants and some IRS types.
A $30,000 standard deduction for all would protect those least able to pay taxes and all other deductions would be eliminated. Even the big dogs could do their own tax filing in under 15 minutes.
All we really need to agree on would be the uniform percentage all would pay on earned income above $30,000.
Waddaya say, kids?

 

[Freemason9]

With another exciting tax season nearly behind me it's time to drag out my solution to the time and expense required to pay the gov't their "fair" share of my earnings.
I understand the corporate side of my misery is unavoidable but we can do away with all the razzmatazz, including the attornies and accountants (necessary to keep me out of tax prison) as well as the time and stress connected to the personal filing.
We can do this in a way that is fair to all if we try and the only losers would be the aforementioned attornies and accountants and some IRS types.
A $30,000 standard deduction for all would protect those least able to pay taxes and all other deductions would be eliminated. Even the big dogs could do their own tax filing in under 15 minutes.
All we really need to agree on would be the uniform percentage all would pay on earned income above $30,000.
Waddaya say, kids?

As soon as you can explain how income is defined, we might have this conversation. Apparently you don't understand how much of current tax law concerns income determination.

Really, the "flat tax" idea is merely a proposal to decrease the top marginal rates and increase the bottom ones so that everyone pays the same rate, regardless of income. Correct?

 

[oldfart]

we can do away with all the razzmatazz, including the attornies and accountants (necessary to keep me out of tax prison) as well as the time and stress connected to the personal filing.
We can do this in a way that is fair to all if we try and the only losers would be the aforementioned attornies and accountants and some IRS types.
A $30,000 standard deduction for all would protect those least able to pay taxes and all other deductions would be eliminated. Even the big dogs could do their own tax filing in under 15 minutes.
All we really need to agree on would be the uniform percentage all would pay on earned income above $30,000.
Waddaya say, kids?

As soon as you can explain how income is defined, we might have this conversation. Apparently you don't understand how much of current tax law concerns income determination.

Really, the "flat tax" idea is merely a proposal to decrease the top marginal rates and increase the bottom ones so that everyone pays the same rate, regardless of income. Correct?

First, I assume I'm included in the "attorneys and accountants" category (I'm an enrolled agent). I have enjoyed unparalleled job security over the last 34 years in large part because of the people who support the flat tax who have diverted attention from any substantial tax reform!

I agree that the problem of defining income would remain, and that "choosing a rate" is not nearly as easy as it sounds. In addition, I submit that the myriad tax breaks for the wealthy are like to remain or sneak back in, so the main effect would be to raise taxes on everyone making under $100k or so. And what are the proponents doing with the refundable credits? Inquiring minds want to know.

 

[rightwinger]

Are there any flat tax proposals that do not lower the taxes paid by the wealthiest Americans?

 

[SAYIT]

The code already contains a working definition of EARNED INCOME on which we base our various tax rates. Rather than playing footsie with the myriad ways the wealthy are able to avoid paying taxes, ELIMINATE all deductions except a standard $30,000 (or $40,000, or whatever) for all filers and then apply the flat tax rate to all EARNED INCOME above the standard deduction. It is bizarre to believe deductions for "the wealthy will remain or sneak back in" or be allowed to.
The trade off is simplification for a uniform rate on every taxable dollar.
The current system is inherently unfair, unwieldly and, except for those who benefit (accountants, attornies & IRS types) from its complexity, inefficient. The 100 hours a year small business owners spend planning and preparing for tax requirements would be far better spent growing our businesses.
You know ... creating real jobs rather than make-work for suits.

 

[Vandalshandle]

Flat tax is a great idea for the wealthy. A man who spends 3% of his income on housing, because he makes $500,000 per year, would pay the same tax percent as a guy who makes $50,000 per year, and spends 20% of his income on housing. I somehow see Republicans behind this....

 

[itfitzme]

No.


I submit that the money supply is a public good and a flat tax would be a mistake leading to a tragedy of the commons.

 

[SAYIT]

Flat tax is a great idea for the wealthy. A man who spends 3% of his income on housing, because he makes $500,000 per year, would pay the same tax percent as a guy who makes $50,000 per year, and spends 20% of his income on housing. I somehow see Republicans behind this....

With a $30,000 Standard Deduction a filer with $50,000 in earned income would pay tax on $20,000 (on 40% of his income) while one with $500,000 in earned income would pay tax on $470,000 (on 94% of his income). Make the SD $40,000 and the lower earner pays on only 20% of his earnings while the latter pays on 92%. Hell, we can even eliminate the SD for those making more than $500,000.
Does anyone believe that anyone making $500,000 per year is currently paying taxes on 96% of his income. Eliminating the complex tax perversions, none of which benefit lower income earners, the tax load will remain. What will change will be the need to slave over gov't mailings, forms and requirements ... a total waste of precious time.
Some peeps just see Republicans behind everything.

 

[rightwinger]

Flat tax is a great idea for the wealthy. A man who spends 3% of his income on housing, because he makes $500,000 per year, would pay the same tax percent as a guy who makes $50,000 per year, and spends 20% of his income on housing. I somehow see Republicans behind this....

With a $30,000 Standard Deduction a filer with $50,000 in earned income would pay tax on $20,000 (on 40% of his income) while one with $500,000 in earned income would pay tax on $470,000 (on 94% of his income). Make the SD $40,000 and the lower earner pays on only 20% of his earnings while the latter pays on 92%. Hell, we can even eliminate the SD for those making more than $500,000.
Does anyone believe that anyone making $500,000 per year is currently paying taxes on 96% of his income. Eliminating the complex tax perversions, none of which benefit lower income earners, the tax load will remain. What will change will be the need to slave over gov't mailings, forms and requirements ... a total waste of precious time.
Some peeps just see Republicans behind everything.

That first $30,000 is a pittance to the super wealthy. Everything they earn over $30,000 would be taxed at a significantly lower rate.

Show me the numbers that say the wealthy would not have a significant cut in their taxes

 

[editec]

With another exciting tax season nearly behind me it's time to drag out my solution to the time and expense required to pay the gov't their "fair" share of my earnings.
I understand the corporate side of my misery is unavoidable but we can do away with all the razzmatazz, including the attornies and accountants (necessary to keep me out of tax prison) as well as the time and stress connected to the personal filing.
We can do this in a way that is fair to all if we try and the only losers would be the aforementioned attornies and accountants and some IRS types.
A $30,000 standard deduction for all would protect those least able to pay taxes and all other deductions would be eliminated. Even the big dogs could do their own tax filing in under 15 minutes.
All we really need to agree on would be the uniform percentage all would pay on earned income above $30,000.
Waddaya say, kids?

I think a FLAT tax is not a good idea.

Simplifying the tax code, however, is a good idea.

 

[Skull Pilot]

Are there any flat tax proposals that do not lower the taxes paid by the wealthiest Americans?

Yeah the one that sets the rate at 39% for everyone.

 

[Skull Pilot]

A flat tax is the best tax.

10% of every dollar earned via any means (Interest, capital gains etc) no deductions no exemptions and done.

Simple cheap to enforce and would increase revenues to the government while reducing the costs.

 

[boedicca]

As we are seeing in the media in high relief these days...the complicated tax code encourages abuse of power. Besides the enormous cost in terms of time and money just to comply, the moral hazard of petty bureaucrats (unionized at that) to wield the tax code against political enemies is growing.

A flat tax (same rate for everyone with uniform flat deduction per person) is the only way to get out of this mess.

 

[boedicca]

A flat tax is the best tax.

10% of every dollar earned via any means (Interest, capital gains etc) no deductions no exemptions and done.

Simple cheap to enforce and would increase revenues to the government while reducing the costs.

The Big Government types don't want simple and cheap to enforce. When even the overseers don't know how to interpret the law, they have a big club with which to beat the tax slaves into submission.

 

[Skull Pilot]

I have yet to hear a good reason why income is treated differently than any other commodity that is taxed?

Sales taxes are a flat tax
Excise taxes are a flat tax
Gas taxes are a flat tax
Property taxes are a flat tax

Why not income?

 

[Toro]

Exempt the first $20k, then tax all sorts of income at 20% thereafter. Dividends, capital gains and income would all be the same.

 

[boedicca]

20% is excessive.

 

[Toro]

20% is excessive.

The average household makes about $40k a year. Their effective rate would be 10%. Someone making $100k would pay 16%. I don't think that's excessive.

 

[Mad Scientist]

I think a Flat Tax on top of all the other taxes Americans pay is a good idea.

 

[Skull Pilot]

20% is excessive.

The average household makes about $40k a year. Their effective rate would be 10%. Someone making $100k would pay 16%. I don't think that's excessive.

Just make the rate 10%. Period

Why should part of anyone's income be exempt from income tax?