EQUITABLE TAXATION?
This is more a suggestion than a question.
Lets simplify the tax code so that:
If you earn an income above a certain level, you pay a percentage to the government and if you earn below that level, you receive a refund check from the government...automatically. This plan will cover only earned income.
Capital gains should be taxed seperately.
Simultaneously, lets abolish all the tax loopholes, incentives as well as entitlement programs.
Answers
951 points
Grudun answered 6 months ago …
Everyone is in favor of a simplified tax plan(ie. flat tax, fair tax, simplification of current system etc.) but it never changes because there is too much invested in the current system. The government unions fight a simplified system because it would cost them jobs, buissiness because they would not be able to slip in special incentives for their industry without many people noticing(until it gets excessive or highly political like oil company credits), the tax industry because they have a multi-billion dollar industry that could be cut up to 90%, and individuals because they are afraid of loosing one treasured advantage or another(earned income credit, child tax credit, mortgage deduction, etc.). So even though everyone is in favor of simplification we are all loosing because we are afraid that the other guys will get more(just like the surveys that say people would prefer to make $50K while those around them make $25K than make $100K while those around them make $250K).
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2547 points
Oldman answered 6 months ago …
Perhaps if McCain gets Huckabee as a running mate, and if the Republicans win or have a strong showing, then the FairTax.org site will get some exploration.
You ought to explore that site and run your own financial analysis; there's an excellent calculator at the site and commentary as well as detailed analysis of how 'the fair Tax" concept would work, its effects on other taxes (such as property and state/local income taxes) etc. The people who are against this concept are currently in the majority, because each believes the others would gain some advantage that they would not...but after paying Federal taxes for over 60 years, I think it's better than dealing with 66,000 pages of Treasury regulations, abd 1700 lbs. of IRS instruction booklets and forms.
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