Flat Tax vs. Progressive Tax

[burkhartmj]

Since this board is for any politics, not just election '08:

After doing extensive study for an essay, I was convinced the flat tax makes a hell of a lot more sense than our current progressive tax. While lobbyists have tried to villify it by saying that it taxes the poor, the current plan stuck in the Ways and means committee doesn't at all. When flat tax was first considered, people knew it wouldn't resonate without at least 1 bracket for the poor. So up to 23 grand a year is exempted for married couples, with it being progressively less as the family unit gets smaller. Also, while it eliminated most of the loopholes the rich used to get out of paying their due, some of the important ones were kept, like charity donations. most classic liberals back in the 19th century were actually staunchly against graduated taxing, considering it a form of robbery. Since then it has become a more conservative issue to an extent, but has remained largely nonpartisan. The current proposal would tax everyone at 19% for the first 2 years after it's phased in, then drop to 17% after that. While taxing the middle class and upper class technically less, it would actually generate more revenue, due to the absence of loopholes for the upper class to utilize. It wouldn't mess with the lower class, due to the exemption. It would stimulate the economy due to the middle class having more money to put into luxury items and necessities.

Thoughts?

[secret-steve-crumbles]

Flat Tax is better, FairTax is best. Unfortunately the Lefties have made it a "right-wing" tax, even though that's totally not the case, so, they just decide to ignore it, and mimic it at other times.

"The FairTax won't work! -- Hey, let's give people more money to stimulate the economy... that will work, but wait, the FairTax won't!"

[tokenuser]

I am a fan of Goods and Services Tax (GST, VAT) style taxation. You earn more, you spend more, you get taxed more. Its a simple story as a consumer, but a bitch for business owners to manage - it basically drove my father-in-law (a building contractor) out of business ... not because of debt, just because it was complex to administer.

I like the concept of a flat tax in conjunction with GST. Unfortunately, I don't think it will fly in the US.

You forgot an option: no tax.

All tax is robbery, technically.

http://en.wiktionary.org/wiki/robbery

[bigshotprof]

I would be for about any tax at this point that I could understand. I think there is some value in a VAT tax, the problem is you can't do any more than estimate what your revenues are going to be. Does anybody here know what the actual percentage the average household pays after itemization?

[secret-steve-crumbles]

Originally Posted by sir_scutter

You forgot an option: no tax.

All tax is robbery, technically.

http://en.wiktionary.org/wiki/robbery

Hahahah, you linked to robbery. That really slam dunked your argument.

[burkhartmj]

Originally Posted by tokenuser

I am a fan of Goods and Services Tax (GST, VAT) style taxation. You earn more, you spend more, you get taxed more. Its a simple story as a consumer, but a bitch for business owners to manage - it basically drove my father-in-law (a building contractor) out of business ... not because of debt, just because it was complex to administer.

I like the concept of a flat tax in conjunction with GST. Unfortunately, I don't think it will fly in the US.

VAT is probably the only tax worse than our current system. It doesn't just tax because you spend more, it taxes every level of production. This worked when necessities were simple things like food and clothing [fewer levels of production], but with the growing complexity of necessary technologies nowadays [I believe computers are necessary now], things are being taxed that even the poor have to pay for. this issue is only going to get worse as technology gets more and more complicated and has more levels of production. And, as you said, it's complicated as all hell. Even the proposed flat tax [as compared to a true flat tax] with a few exemptions and allowances [the 23 grand] would fit on a slightly large post card:



Since you put them together, I'm warily assuming GST is based around the same principles of VAT?

[esophagus]

Don't lump me in as the "bad" lefties you're refering to, I definitely think FairTax is a good system.

If I lived in the US, Huckabee would have been someone I actually considered voting for. While he has some positions I disagree with (mostly religious issues like gay rights and the displaying of the commandments in schools) I think a lot of his larger positions make a lot of sense.

[straylightrise]

Both sides should work on a compromised tax system that integrates progressive and flat taxes together. Maybe a flat personal tax and a progressive tax for businesses? I don't know. I HATE economics and math but I'm pretty much for less taxes for EVERYONE.

Originally Posted by phatlip12

I guess those roads, schools and hospitals will just appear then right?

I love how these things seem impossible to do without gov't.

I'll save my keyboard a pounding and just link to the argument already in progress.

http://revision3.com/forum/showthrea...t=22288&page=4

Probably a better place to put it, too. I'll let the TAX vs. TAX discussion continue peacefully.