9-9-9 Tax Plan - Impacts

[Frixxxx]

When I figure it, my total tax goes from 15% of AGI, to 9%. Of course then I'd pay 9% sales tax on purchases. Seems like my total would be reduced but I'm not 100% sure.

The Problem with a flat tax is that it is a consumer tax. When market fluctuates and consumerism falls, it automatically costs the government. Less jobs, less earners, less taxes, less government revenue. Also, when the government needs to operate above it's revenue stream I agree it will cause the government to increase the levels and thus, taxation above the promise. Progressive tax works but distribution of the levels needs to address progressively, and not layered like a cake. But that means that it has to be lowered to reach the levels of those who are currently not paying...And hence, not fair. And no, do not pay taxes on election day...Then it's too late.....Taxes should be an honor to pay, not a burden......

 

[nasa1974]

My understanding of a flat tax is that there are no deductions. So if you earn $100,000.00 you will pay $9,000.00.

 

[Bquat]

I think you might be right in some respects to your sistuation....But I really think there will be some major adjustments to the 1040's...

But what I think would really make all this work, would be to stop the April 15th filings all together for non business or in other words, personal/family filings would be abolished

With a flat tax why would you have to file. Matter of fact the goverment can automatically take out your tax and there would be no delenquent tax payers. I don't know why they don't automatically take tax out of your pay and have you file for your deductions in a return. Then everyone would file to get their part back. Don't know about the ones who work for cash and don't claim income, like maids, car washers, auto detail and lawn and garden businesses and so on.

 

[SteelSaving]

A national sales tax is an awful idea. It is a brand new tax to raise along with income tax. Why not get by the way we did for the first 150 years. No sales tax, no income tax. Tax booze.

 

[Bquat]

A national sales tax is an awful idea. It is a brand new tax to raise along with income tax. Why not get by the way we did for the first 150 years. No sales tax, no income tax. Tax booze.

Tax booze, cigaretts, soda, sugar, candy, icecream, donuts, mary jane, prositutes and anything else that can be legalized and taxed with a sells tax. Maybe not donuts. Just make them $16.00 each for congress.

 

[Viva_La_Migra]

The Problem with a flat tax is that it is a consumer tax. When market fluctuates and consumerism falls, it automatically costs the government. Less jobs, less earners, less taxes, less government revenue. Also, when the government needs to operate above it's revenue stream I agree it will cause the government to increase the levels and thus, taxation above the promise. Progressive tax works but distribution of the levels needs to address progressively, and not layered like a cake. But that means that it has to be lowered to reach the levels of those who are currently not paying...And hence, not fair. And no, do not pay taxes on election day...Then it's too late.....Taxes should be an honor to pay, not a burden......

The people will remember who is causing the increase in their taxes if returns are filed on election day.

 

[nnuut]

A national sales tax is an awful idea. It is a brand new tax to raise along with income tax. Why not get by the way we did for the first 150 years. No sales tax, no income tax. Tax booze.

HEY!!! Watch that Buddy!

 

[ILoveTDs]

I'm confused on the 9% corporate tax. My understanding is by reducing the corporate tax to 9% would make America a more desireable location to move or create a corporation. Therefore, infusing the economy and creating job growth which turns into more tax revenue overall (trickly down economics). If this is in fact the theory, as I understand it, then in theory wouldn't a 8%, 7%, ....., 1%, 0% corporate tax rate make America even more competative (then 9%) in the global economy and creating job growth which turns into more tax revenue overall.

 

[WorkFE]

As a business owner I like the way you're thinking but taxes must be collected by all segments. (Class and Business).

 

[nnuut]

I think if we want our own companies to start moving back to the USA 0% corporiate taxes and other incentives would probably do the trick.

 

[James48843]

A national sales tax is an awful idea. It is a brand new tax to raise along with income tax. Why not get by the way we did for the first 150 years. No sales tax, no income tax. Tax booze.

They taxed imports then. Everything that came from outside the U.S. was subject to an import duty. Amazing how well that worked. Average rate was between 20% and 35% over more than 100 years. and that funded almost everything we needed. http://en.wikipedia.org/wiki/Tariffs_in_United_States_history

 

[nasa1974]

I think corporate tax had very little to do with it. Why stay here and pay an American worker $20/hr when you can go oversees and pay less than $20/day.

 

[Viva_La_Migra]

I think corporate tax had very little to do with it. Why stay here and pay an American worker $20/hr when you can go oversees and pay less than $20/day.

Is it just the hourly rate, or is it payroll, taxes, and unfriendly business regulations? I think they'd deal with payroll if they didn't have so much regulatory red tape and high corporate taxes.

 

[ILoveTDs]

If labor costs of $20 an hour can't compete with the likes of let’s say the Chinese yen and their hourly rate. Then wouldn't it make sense to print say $14 Trillion, demonetizing our dollar, pay off china, and have comparable wages?