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Thread: Flat Tax

  1. #1
    Join Date
    Jan 2003
    Posts
    313

    Flat Tax

    Is the Flat Tax the fairest plan?

    http://www.youdebate.com/DEBATES/TAX_FLAT.HTM

  2. #2
    Join Date
    Aug 2010
    Posts
    80

    How do we flatten it?

    The root cause of much income tax inequities is due to our progressive income tax rates. Progressive income tax rates’ purpose is to promote a good and justifiable policy that we provide some tax relief for lower income earners. We simply didn’t realize or appreciate the extent of mischief due to our choosing progressive income tax rates as the method to achieve that purpose.

    Each perceived or actual tax inequity induces a modification of our tax regulations; each of these remedies are in turn actual or perceived to be inequities to other factions that in turn lobby for still another regulating remedy. Our income tax regulations grow as a great onion under the ground; they’re layers upon layers of additional inequities.

    Due to these additional tax inequities and loop holes the actual purpose of progressive rates, (to provide some tax relief for lower income earners) are severely undermined. Due to this and our FICA payroll tax are now the cause of our lower income wage earners being taxed much greater (than intended) proportions of their incomes.

    [Employers' portions of FICA serves similar to a sales tax except they additionally inhibit job creation. Due to this, FICA's an additional drag upon our nation’s economy and particularly upon our median wage].

    There are simpler more effective and less intrusive methods that would better provide the intended tax relief for lower income earners. The problem is how to rid ourselves of the progressive income tax.

    Increasing lower income earner’s tax rates is politically unfeasible. It would also be economically and socially detrimental. Favoring higher income earners with tax rate reductions would be politically unfeasible and increase the federal deficit.
    It would be more feasible to reform our income tax system if we decreased our dependence upon this overwhelming major source of federal revenue.

    I advocate that we should incrementally shift our revenue sources from income taxes to a sales tax. I believe that an acceptable rate of sales tax could not feasibly replace the entire revenue we derive from income taxes, (i.e. the “fair tax”). If I’m wrong, sales taxes will completely replace income taxes. If I’m correct, after some incremental step the sales tax rate will approach an unacceptable rate and the transfer of the tax sources will have to be interrupted.

    Respectfully, Supposn

  3. #3
    Join Date
    Apr 2005
    Location
    Lancaster, UK
    Posts
    4,892
    Sales taxes are inherently regressive. If the tax authorities (of whichever country, this applies as much to the IRS as to HMRC and no doubt others around the world) were serious about correcting inequities in the tax system, they could simply rigorously enforce what already exists, and prosecute tax evasion more determinedly. They won't, because the wealthy control the politicians who control the tax authorities.
    “When I give food to the poor, they call me a saint. When I ask why the poor have no food, they call me a communist” - Helder Camara
    “It is not the will of God for some to have everything and others to have nothing. This cannot be God” - Oscar Romero
    "It is my conviction that killing under the cloak of war is nothing but an act of murder" - Einstein
    "We do know that no man can be saved except through Christ; we do not know that only those who know Him can be saved through Him" - CS Lewis

  4. #4
    Join Date
    Aug 2010
    Posts
    80

    Tax policies

    Quote Originally Posted by Jo Bennett View Post
    Sales taxes are inherently regressive. If the tax authorities (of whichever country, this applies as much to the IRS as to HMRC and no doubt others around the world) were serious about correcting inequities in the tax system, they could simply rigorously enforce what already exists, and prosecute tax evasion more determinedly. They won't, because the wealthy control the politicians who control the tax authorities.
    Jo Bennett, there’s little point of our discussing tax policies since you have already decided that present tax laws are not so insufficient and our problems are primarily due governments’ incapable or unable or unwilling to “simply rigorously enforce what already exists, and prosecute tax evasion more determinedly”.

    I don’t believe that the U.S. government is more diligent or capable than that of Great Britain. Here in the USA I believe our tax problems are due primarily to our tax policies.

    Respectfully, Supposn

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