Flat TAX/Fair TAX, Would it Be GOOD!

[James48843]

Re: Flat TAX, Would it Be GOOD!

Who could disagree with that ???

All the accountants, tax lawyers, software companies that make our current complicated software needed to figure our current taxes, and the entire tax industry. There's too many of them who would go out of business if it were simply that "flat tax simple. "

 

[James48843]

Re: Flat TAX, Would it Be GOOD!

... the flea marketers to the hookers and drug dealers. You buy something new you pay the tax.

Not too sure what you mean here. I kind of figured flea markets and hookers dealt in USED, not new merchandise.

Of course, I could be wrong.

Since you are theorizing a flat-tax- why are you saying only on New products? Does that not suddenly reduce demand for "new", when people can buy used, and save having to pay the tax? Would that not put a damper on "new sales", whether it be cars, or boats, or any number of a variety of consumer goods that can be had second hand for a good price, without paying your "fair tax"?

(P.S-- European VAT taxes usually include used goods. If you buy a used car in the UK, you pay a 16% VAT tax over again).

 

[grandma]

Re: Flat TAX, Would it Be GOOD!

The problem with the % of income tax is that 10% out of a $400/month income takes up much more of the spendable cash than that same %10 oo an $800 income. My theory has always been that a laborer's time is nearly always worth alot more than a busy CEO's. The latter may think his/her hour is Worth a lot of money - however, %age wise - it is not.

The Fair Tax - taxing on the article, item, (& service ?) itself when first purchased new seems quite fair...my oo work granddaughter will pay on a new tire and the quite-nicely-compensated Exec will pay on his yacht!!
And those of us in-between will watch our discretionary spending a bit more closely.
Who could disagree with that ???

 

[Show-me]

Re: Flat TAX, Would it Be GOOD!

The credit would not be taxed, only the item.

Here is another revenue stream I did not think of. Tourists visiting the USA would help contribute if they buy goods here.

My biggest love of the idea is that the underground would have to pay their fair share from the flea marketers to the hookers and drug dealers. You buy something new you pay the tax.

 

[burrocrat]

Re: Flat TAX, Would it Be GOOD!

I like the fair tax idea, it would be simple across the board, if you consume you pay no matter who you are or how you came by your resources. it would go a long way to curbing the cost overuns in health care, carbon tax, etc. that everyone is so worried about, instant penalty and disincentive.

Unfortunately i think the implementation would get corrupted along the way. If i buy a trinket on the credit card obviously the purchase is taxed, but then when i pay the credit card bill then i also probably purchased credit, taxed again. of course, it takes a back-office processing house to clear the transaction, a stamp to mail the bill in or access to the internet online payments purchased from somebody, and if i want to research information on better deals why that's a taxable service too.

It's like musical chairs and the little man is the wallflower paying the band, never gets to dance. I never understood how 1lb of flesh could be generated from 15oz of dead meat. i guess thats why i'm po.

 

[Show-me]

Re: Flat TAX, Would it Be GOOD!

Also, and "used" item is not subject to the FairTax, only "new" items.

 

[Show-me]

Re: Flat TAX, Would it Be GOOD!

And the beauty to the "FairTax" system is you are not taxed on your income. Only on what you spend in retail.

 

[ripper]

Re: Flat TAX, Would it Be GOOD!

For my own personal situation, I prefer the present tax system over a flat tax.
In 2008, I had $69,000 in W-2 income plus $25,000 in gross rental income. I'm single with no dependents and paid $6,500 in Federal income tax.
I've never heard exactly how a flat tax would address rental income. I'm assuming it would tax gross rental income. If so, I would have paid over $14,000 using a 15% flat tax. Even without the rental income, I still would have paid over $10,000.
I know my situation is somewhat unique, and I can understand those who would rather have a flat tax if it would lower their tax bill. I think that for most, it's not necessarily what is more fair but what will benefit each of us individually.
On a side note, I've always thought that a national lottery would provide a nice supplemental revenue for the government. The Fed keeps half the lottery sales and then gets more revenue by taxing the prize winners.

 

[nnuut]

Re: Flat TAX, Would it Be GOOD!

I believe you're right, NO CHANGE in the immediate future!

 

[Pill]

Re: Flat TAX, Would it Be GOOD!

Sad, isn't it?

The Golden rule- He who has the gold, gets to write the rules.

Very sad, we need a revolution in so many areas its pathetic. I try to remain optimistic but I really don't see many changes to come.

 

[James48843]

Re: Flat TAX, Would it Be GOOD!

And there you have it folks the corruption runs so long and so deep to the point we will never do the right things that are the most simple because someone can not profit from the out come.

Lawyer can't profit, accountants can't profit, software developers can't profit, thus we can not have reasonable legislation and protect our incomes.

Sad, isn't it?

The Golden rule- He who has the gold, gets to write the rules.

 

[Show-me]

Re: Flat TAX, Would it Be GOOD!

And there you have it folks the corruption runs so long and so deep to the point we will never do the right things that are the most simple because someone can not profit from the out come.

Lawyer can't profit, accountants can't profit, software developers can't profit, thus we can not have reasonable legislation and protect our incomes.

 

[James48843]

Re: Flat TAX, Would it Be GOOD!

the ""Tax Industry" would never allow it to happen.

Way too many accountants, tax preparers,Tax lawyers, tax counselors, etc. would go out of business.

Nice thought, but it would never pass due to the MONEY made by the tax system's complexity.

 

[Steadygain]

Re: Flat TAX, Would it Be GOOD!

However, there are some very real, not so obvious, consequences to making such a dramatic change in our tax system. The first would be the almost complete dissolution of the IRS.

Well my dear friend,
I feel like you are almost making an attempt to get me off the feilds with the other deer. So let me start by saying we have already covered this subject in the past when I was a Predator.

I prefer that the government would tax spending and not income which means I would prefer that taxes be collected on retail sales.

I would prefer that the Government would be like more like a Herbivore instead of a Predator. Surely we have more than enough 'Protector Power' within our huge buildup and storage that we can relax. There is nothing wrong in wanting to protect our Home Country but there is NO NEED for us to insist on being a Preditor in our behavior with all the others.

So the Very Best thing the USA could do is lean more on the pure power of GOD and His Perfect Love, Power, Grace and Mercy and let that become the increasing measure of everything they do.

Then RAISE TAXES to put an end to the Increasing Debt. Reduce the way Taxes are utilized so that maybe 5% MAX goes toward the Military (instead of 40% or better). Drastically reduce the various WELFARE Systems - and elimate WASTE SPENDING as much as possible. Make it 'illegal' for the vast majority of 'Pork Spending' and imprison the politicians clearing doing this simply to make a name.

Try to inspire all to be Herbivores and let them really see how much freedom and beauty and life is by doing this.

The British Gov't has raised the VAT 2.5% effective in January 2010.

The British Gov't was 'The Super Power' for much of our relatively recent past history. They have demonstated the TRUE power of a Predator Nation and it's fascinating to see the depth by which they dominated 'world control' in Opium Trade - Oil - Diamonds and wherever 'Cheap Labor' was made readily available (Africa, India, Hong Kong...).

If 'we' are honestly going to relate our Nation with the British Gov't then let's do this with the most genuine and open ability to see how deeply they both share in - and reinforce - the characteristics that make them the Predator Kings.

If my comments offend anyone -- I am sorry -- and do not mean to rouse feelings of anger or discontment. I simply believe the most important thing to recognize in a TAX SYSTEM is first and foremost the ways it fails ~~ if it is Predator and Wasteful ~~ and how it should most ideally be used today and in the future.

So in conclusion I would say RAISE the TAXES as much as possible to get everything possible and pay off the debt -- and as the Debt is elimated then LOWER the TAXES so future generations can live way better than we have lived. Not as Predators but as Herbivores.

God's Richest Blessings on everyone -- everywhere as this New Year gives us a New Opportunity of Hope.

 

[KevinD]

Re: Flat TAX, Would it Be GOOD!

I'm all for the FairTax but nnuuts poll asks if a flat tax would be better than the mess we have now. I voted yes.

 

[nnuut]

Re: Flat TAX, Would it Be GOOD!

Hummmmm What is best? Be back later going to the local Watering Hole for Happy Hour!!

 

[Show-me]

Re: Flat TAX, Would it Be GOOD!

Elimination for the most part of the IRS and all of the tax cheats. Elimination tax accountants for the most part and keep more money in the consumers pocket.

 

[Show-me]

Re: Flat TAX, Would it Be GOOD!

A flat income tax misses the criminal and under the table incomes. FairTax uses the sales tax system already in place .

 

[nnuut]

Re: Flat TAX, Would it Be GOOD!

The British Gov't has raised the VAT 2.5% effective in January 2010. If we had a Flat Tax in the USA would the Federal # include the State Sales tax or would it be on top of the Federal VAT? We have 7% Sales tax where I'm at, add that to a 17.5% Federal VAT that would mean a Tax of 24.5% if we all pay a flat Tax of 17.5% for everyone regardless of income. Adding the Tax that Manufactures, service corporations and commodity distributors would would pay, it would inflate our VAT due to higher prices. It's a vicious cycle!:worried:


Shoppers face confusion over VAT rise

The cut in VAT is estimated to have boosted spending by £6.8bn

Shoppers are facing the last day of the lower rate of VAT, although many retailers have said they will not increase prices on 1 January. VAT is set to return to 17.5% in the new year after being reduced to 15% on 1 December 2008.
The government cut VAT in an attempt to boost spending in the recession.
But several retailers have said that they will delay passing on the higher rate, while others say they will absorb the cost of the increase.
The Centre for Economics and Business Research (CEBR) estimates that the 13-month tax cut helped boost consumer spending by £6.8bn, although the British Retail Consortium (BRC) says it has had a "very limited effect".
However, the CEBR warned that the first few months of 2010 could be tough for retailers, as spending may be affected by the increase in VAT and rising inflation.
Fake freeze?
Supermarket giants Tesco, Sainsbury's and Asda have all said that they will delay passing on the increased rate on thousands of products.
But Tesco has been accused of raising prices ahead of the tax rise.
A report in the Daily Mail claims that Tesco, Boots and Morrisons have all increased the prices of certain items in recent weeks.
Tesco told the newspaper its price changes had "no link whatsoever" to the VAT increase.
"A small proportion of products will have increased in price but this is either because of special offers coming to an end or an increase in the cost price. Many more prices have fallen than increased," a Tesco spokesperson said.
Boots said it benchmarked its prices against other retailers.
Morrisons, which has not claimed that it would freeze VAT, said prices vary throughout the year "reflecting costs and promotional changes".
Absorbing costs
Meanwhile, Argos and John Lewis both say they will not raise prices until the end of January.
Arcadia Group, which owns Topshop, Dorothy Perkins and BHS, has said it will absorb the cost of the increase in all of its stores.
But Marks and Spencer will raise prices on all general merchandise from 1 January and on food items on which the tax is paid from 11 January.
Shoppers will not notice a difference on price tags, though, as the retailer never displayed the VAT reduction on tags, instead giving customers a 2.5% discount at the till.
http://www.associatedcontent.com/article/568641/the_pros_and_cons_of_the_flat_tax.html

 

[wwwtractor]

Re: Flat TAX, Would it Be GOOD!

I prefer that the government would tax spending and not income which means I would prefer that taxes be collected on retail sales. This would simplify the tax system by eliminating the whole income tax system. We have a sales tax system already which makes for two gestapo systems. If you do not believe it, try not paying your sales taxes and see how long it takes men with guns to show up to lock up your business.