Flat tax

[FreedomFan]

Flat tax is an inherently bad idea. Is is extremely unfair to the lower and middle class...only benefits the rich as their rates go down and everyone esle's go up. Amazes me that middle income Americans think this is an idea that has value.

comments above about it helping the housing market are just plain wrong.

Agreed. It's about more than just simple mathematics. The basic cost of living is the same for everyone across the spectrum of incomes. Therefore, a "flat tax" will be more burdensome to folks at the bottom of the spectrum. 10%, of someone who makes minimum wage is a lot more significant to them than 10% of someone who makes 6 figures.

 

[FreedomFan]

There should not be a tax on income, but only a flat tax amuont on purchases.

I am 100% behind consumption taxes. I can live on surprisingly little.

 

[FreedomFan]

True, but it's fair and I think that is the most important consideration in tax policy. Everyone should have skin in the game whether you earn $10,000 or $10,000,000,000 and should pay the same percent. We don't base the price of a loaf of bread on level of income so why taxes?

Ray

No. Flat taxes are neither fair nor flat.

The most important consideration in tax policy? Seriously? I always thought that in our system, the most important consideration in tax policy is that the taxes must be fulfilling a societal need.

 

[Rommey]

Flat tax is an inherently bad idea. Is is extremely unfair to the lower and middle class...only benefits the rich as their rates go down and everyone esle's go up. Amazes me that middle income Americans think this is an idea that has value.

This would be true if the tax were applied from the first dollar. But every flat tax proposal I have seen has a deduction component involved.

For example, Steve Forbes had a $36K deduction and everything above that was taxed at 17%. (Note, that the $36K figure was in 2000, and his proposal had this deduction indexed to inflation, so the 2012 amount would be a little more than $48K). So no one would pay a dime of tax on the first $48K. That covers all of the lower class and a good chunk of the middle class (The median income in 2012 was $52K). When you consider that the current deduction is $11,900 (MFJ) and each exemption is $3,800, you would need about 7 kids to get to the $48K mark.

I think that ultimately a Fair Tax-type of plan is where we should be, however, I think that it is too radical of a jump to get there all at once. I think simplifying the current tax schemes with a Flat Tax plan is a good intermediate step.

 

[Bann]

Forgot that I had received a new e-mail from The Fair Tax people this week. I received it on December 19th:


Dear Bann,

Americans For Fair Taxation and the FairTax are gaining traction with elected officials in Washington, D.C.

On Monday, December 17, Sen. Saxby Chambliss and Congressman Rob Woodall sent a letter to the Joint Committee on Taxation asking for a revenue estimate/scoring of H.R. 25/ S. 13, the FairTax Act of 2011. You can view their letters here: Sen. Chambliss | Rep. Woodall

This action will allow the bill to be considered during congressional tax reform negotiations, and paves the way for the House Ways and Means Committee to send HR 25 out of committee to the full House for a floor vote.

This is indeed great news for the FairTax, but the fight for a fair, simple and transparent tax system is not over.

Passing HR 25 will require bi-partisan action. We need your support to significantly ramp up our legislative efforts during this critical time.

Will you please consider making a donation of $10, $50 or even $100 so every voting American knows they no longer have to dread tax season?

Donate Button

As always, we appreciate you being a steadfast supporter of our shared goal. Without your assistance, we cannot accomplish real and lasting change to our tax code. Abolishing the income tax is key to restoring our economy. Thank you for standing with us.

Regards,



Cynthia T. Canevaro

National Campaign Manager

 

[Monello]

The United States is the greatest consumer nation on earth. We have 300+ million consumers, not counting tourists. We have roughly 140 +/- million workers.

FAIRTAX