Flat Tax ?

I am all for a flat tax. Taxes should be removed on all interest and dividends. If there is one thing we are lacking, it is an adequate savings rate.

 

I've never heard (what I consider) a sensible argument against the flat tax.

 

The hard part would be convincing the American people to trade off deductions and credits for lower rates.

 

Why not the Fair Tax? Almost anything is better than the current system.

 

Most criticism I've seen of the fair tax (including an article in this month's National Review) claims it would create an underground economy. Not that I would be against that!

 

But if they realized they wouldn't need deductions and credits....


oh well...most Americans just don't get it.

I like the Flat Tax better than the whole rebate scheme of the Fair Tax proposal. Yank that out and I like the Fair tax a little better.

 

from the article: What the critics have no plausible answer for is this: If the supply-side tax rate reduction model is truly so abhorrent, why are so many nations around the world latching on to it? What explains the Irish Miracle? Why are Germany, France and the U.K. slashing their corporate tax rates? Why are there 18 countries with flat taxes? Are their leaders deranged, or been bamboozled by crackpots? Perhaps a better explanation is that they know intuitively what a new National Bureau of Economic Research study has found: Nations with low tax rates on business have statistically significant higher rates of new business formation, investment and income.

History is clearly not on the side of the antisupply-side attack dogs, and they're losing the policy debate every day in political capitals around the world. Poland just announced it wants to implement a 15% flat tax by 2009. But the American left's obsession with the notion that tax rates don't matter tells us something important about the future. They are preparing the ground for massive tax increases if and when they capture control of the presidency.

 

I used to be in favor of the Fair Tax, but I think that it's unworkable at this point. The rebate system just creates more bureaucracy, and without the rebates, the tax burden of the poor skyrockets.

The flat tax system is the best. I believe that a flat tax rate with a standard deduction and exclusions for dependents would be the best system.

 

I think the fair tax with rebates is almost worst than what we currently have. (I say almost). Why should we give money to the government so they can give it back to us? That seems to be the proposal I heard Huckabee describing. Am I accurate in my understanding?

I would rather see a consumption tax, with grocery store food excluded.

 

Good job I checked the link - the thread title had me thinking of a tax on flats (no, not burst tyres/tires, but what Americans call "apartments") :laugh:

 

This is what Huckabee is supporting:

www.fairtax.org

I also support the concept but I just don't see the American people going along with such a radical change in the federal tax code.

 

Whatever is done, if anything, would have to include, no inheritance tax, and no property tax, at any level.
This system we have now is so big and cumbersome, no one on the face of the earth can understand it all.

 

Think of all the tax lawyers and accountants that would be put out of work.

Of course that would be good for our economy, thousands of peopole who contribute nothing to our economy forced to find new jobs. And eventually some of them might actually make a contribution.

 

The US tax system needs to be scrapped and rebuilt from scratch. But a straight flat tax is a very regressive system that benefits the rich. Kinda like the current system.

 

A flat income tax with a huge standard deduction would not be regressive. I'm talking about a standard deduction for a family of four along the lines of $40,000, or whatever twice the poverty line is.

 

Be careful, now. I'm sure ministers don't make a great economic contribution either!

 

This would be very welcome for many low-income families.

 

Would your flat tax be on all sales? real estate?