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Would you support a flat tax ? Why or why not ?

I can't find the article I was going to put up, but it made claims that a flat tax across the board of 12%, no exceptions, no exemptions, and no refunds, would rectify the majority of budget issues were currently facing, including social security, medicare, budget deficit, etc. That seems low to me, but I'd like to hear what you think.

Update:

The tax would be implemented the exact same way as state and federal income tax. The difference is that income tax brackets would vanish since the tax would be across the board. If you think poor people would get hit any harder than they are now, your wrong. At 15%, a person earning $ 600.00 a week would have $75.00 due, leaving him or her $525.00. Sure the person making $1,000,000 would bring home $850,000, but their now paying tax with no shelters or loopholes, no year end returns. Everyone on the same playing field, as far as how much we would all be taxed on $100.00.

Update 2:

Our economy would not exist if we did not pay taxes.

6 Answers

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  • 1 decade ago

    i am all for a flat tax!

    i am also for and i dont know exactly what this is called but im for it. no income tax, state tax, property tax and the list goes on and on...... the only tax you have is like 12-15% when you buy something.

    people say food would cost more but it actually would not.

    ok look at it this way and im going to make this very simple. if you made $100 and that was the 25% tax bracket (normal or average tax bracket for most people) now im not going to do the 0-15k is 8% and so on thing. just look at it like this. you have income tax of 25% leaving you with $75 (more like 80 something with the way taxes actually work but you get the idea) now you go to the store and buy $50 worth of goods and you have a sales tax of 8% (using the local sales tax rounded) then your bill comes to $54 leaving you with $21.

    using the above sales tax of 15% and only the sale tax. you walked into the store with $100 that you earned bought $50 worth of goods taxed its $57.50 leaving you with 42.50 in your pocket just a tad over double what you had under the old system (using real income tax system you probably have about 1/3 more money under the new system)

    You can save that money or spend it (most americans will spend more increasing tax revenues and helping create demand for labor and goods creating more jobs. even saved money will help the banks have more money to invest and thusly lend to everyone else.

    i know people will pick that appart and give reasons why we should have a 98% tax rate for people who make under 1$ and everyone over 1$ should be taxed at 980% so we can fund "nintendo's for tots" and "hard core porn for preschoolers"

  • Anonymous
    1 decade ago

    That would mean that the poor paid proportionally more tax than the rich as a poor man losing 12% of his salary in tax will be a lot worse off than a millionaire losing the same.

    Targetting the vulnerable like this is just crazy logic.

  • 1 decade ago

    First, its very regressive, and I doubt the number will be as low as 12%.

    Second, you still need the IRS to enforce the rules. What is income?

    Third, what about businesses, the flat tax would be on what, gross receipts, net income, if any?

    Again, who determines what are allowable business expenses? Most of the IRS exam division is concentrated on businesses.

  • 1 decade ago

    A flat tax is actually regressive in effect. It's just another scam to lower taxes on the wealthy.

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  • Anonymous
    1 decade ago

    yes, it is the fairest across the board. Do away with income tax, and the IRS.

  • 1 decade ago

    how about no income tax, that is the fairest, i dont like it when people steal my property

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