What if everyone was taxed the same?

[Big Empty]

What would happen if everyone had a base tax rate of 15%. Whether you made $15000 a year or $5000000.00 a year. How would it impact the economy, jobs and the budget? Since tax seems to be the biggest complaint fir everyone.

[DarrinS]

I think it would hit those people who currently pay 0% the hardest

[pgardn]

The people with the most money would try to get their rate lowered to 10%?

[DUNCANownsKOBE]

It would have horrible results because the tax plan libertarians cream themselves to where everyone pays 15% or less is free market utopian fantasy

[Nbadan]

I think it would hit those people who currently pay 0% the hardest

Corporations?



A flat tax would hit low income tax payers much harder...let's say you make $30K your tax bill would be 4,500K and your take home pay would be 25,500..now suppose you make 400K...your tax bill would be 60K, but your take home pay would be 340K...chances are your not gonna spend all 340K, but the low income payer will be impacted by taxes like Social security, wages, and sales tax on all of his 25.5K

[Wild Cobra]

How about this. The government sends all citizens 18 years old or more a monthly check, around the $800/month level. Then we implement a national sales tax on all goods excluding basic food and basic need items, maybe around 20%. We do away with other federal taxes.

[The Reckoning]

How about this. The government sends all citizens 18 years old or more a monthly check, around the $800/month level. Then we implement a national sales tax on all goods excluding basic food and basic need items, maybe around 20%. We do away with other federal taxes.

lol wut

[Wild Cobra]

lol wut

OK, about $300.

[Goran Dragic]

How about this. The government sends all citizens 18 years old or more a monthly check, around the $800/month level. Then we implement a national sales tax on all goods excluding basic food and basic need items, maybe around 20%. We do away with other federal taxes.

So we have a regressive tax system since this system taxes the poor and middle class WAY more than the rich.

[LnGrrrR]

Imagine all the people...

[coyotes_geek]

What would happen if everyone had a base tax rate of 15%. Whether you made $15000 a year or $5000000.00 a year. How would it impact the economy, jobs and the budget? Since tax seems to be the biggest complaint fir everyone.

It would bankrupt the entire tax industry that depends on a complicated tax code to entice people into paying someone else to figure out their taxes for them and/or paying people into figuring out how to minimize them. It would also hurt politicians who depend on their ability to offer preferential tax treatments in order to entice campaign contributions.

In short, it's a great idea that will never happen because too many accountants, lawyers and politicians depend on our ed up tax code remaining ed up.

[Th'Pusher]

It would bankrupt the entire tax industry that depends on a complicated tax code to entice people into paying someone else to figure out their taxes for them and/or paying people into figuring out how to minimize them. It would also hurt politicians who depend on their ability to offer preferential tax treatments in order to entice campaign contributions.

In short, it's a great idea that will never happen because too many accountants, lawyers and politicians depend on our ed up tax code remaining ed up.

You honestly think a flat tax is a great idea?

[coyotes_geek]

You honestly think a flat tax is a great idea?

If somebody was letting me write a new tax code from scratch I'd only apply the flat tax to income over the poverty line, but generally speaking yes, I think a flat tax would be a great idea.

(income - poverty line) x (rate) = tax.

[Th'Pusher]

If somebody was letting me write a new tax code from scratch I'd only apply the flat tax to income over the poverty line, but generally speaking yes, I think a flat tax would be a great idea.

(income - poverty line) x (rate) = tax.

So, not really a flat tax...still regressive as . Can you provide me a country that has a successful flat tax you would emulate?

[DUNCANownsKOBE]

The only way to have a sustained middle class is an extremely progressive tax that prevents wealth from ac ulating at the top by heavily taxing the rich. I'd love to see emperical evidence that says otherwise.

[DUNCANownsKOBE]

So, not really a flat tax...still regressive as . Can you provide me a country that has a successful flat tax you would emulate?

It would technically be a progressive tax, because they higher you're income the less the poverty line deduction would lower your effective rate.

I agree that it wouldn't work though.

[DarrinS]

We're much better off with highly progressive tax system + loopholes.

[coyotes_geek]

So, not really a flat tax...still regressive as .

I think it's a good hybrid plan that provides all the benefits of a flat tax (easy to understand, not easily manipulated) without being completely regressive.

Can you provide me a country that has a successful flat tax you would emulate?

Trying to define what cons utes a "successful" tax is as hopeless as trying to defined what cons utes "fair". But to answer your question, I'm not aware of any country that has a tax plan similar to what I've suggested.

EDIT: Just to offer up some additional clarification on my viewpoints here, it's not that I'm married to any specific taxation ideology. I just want a tax code that is a whole lot less complicated and a whole lot less easy for politicians to manipulate.

[DUNCANownsKOBE]

We're much better off with highly progressive tax system + loopholes.

Awesome strawman argument tbh

[DUNCANownsKOBE]

Trying to define what cons utes a "successful" tax is as hopeless as trying to defined what cons utes "fair". But to answer your question, I'm not aware of any country that has a tax plan similar to what I've suggested.

Here's a better question, can you identify a country with a sustained middle class and a flat tax system?

[coyotes_geek]

Here's a better question, can you identify a country with a sustained middle class and a flat tax system?

That question gets you the same answer. As far as I know, no one is trying a flat tax.

[DarrinS]

If somebody was letting me write a new tax code from scratch I'd only apply the flat tax to income over the poverty line, but generally speaking yes, I think a flat tax would be a great idea.

(income - poverty line) x (rate) = tax.

I'm for a simple tax code like this. I can't stand going through all those itemized deductions -- pain in the ass.

[DUNCANownsKOBE]

That question gets you the same answer. As far as I know, no one is trying a flat tax.

Gee I wonder why.

I also don't understand why a flat tax would be any harder for politicians to manipulate. Another president like George Bush could just as easily come in and come up with a reduced flat rate for dividend income as the original W did, and law could just as easily be written that shelters income from taxation. What manipulation would a flat tax prevent?

[Th'Pusher]

I think it's a good hybrid plan that provides all the benefits of a flat tax (easy to understand, not easily manipulated) without being completely regressive.



Trying to define what cons utes a "successful" tax is as hopeless as trying to defined what cons utes "fair". But to answer your question, I'm not aware of any country that has a tax plan similar to what I've suggested.

EDIT: Just to offer up some additional clarification on my viewpoints here, it's not that I'm married to any specific taxation ideology. I just want a tax code that is a whole lot less complicated and a whole lot less easy for politicians to manipulate.

I am all for a more simple tax code as well. I just think it needs to be more progressive than (income-poverty line) x rate. Seems you could accomplish the same thing by keeping the progressive tax bracket system while eliminating loopholes or just capping deductions. A 15% tax rate for those making 100k - poverty line vs 1M - poverty line is only going to exacerbate inequality.

[coyotes_geek]

Gee I wonder why.

Because nobody wants to try it. Low income voters want to stick it to the rich, so they elect politicians who will support an allegedly "progressive" tax system. The rich then invest their money in politicians, accountants, lawyers and lobbyists to make that system less progressive than it appears. Low income voters are happy because they see higher marginal rates for the rich and think their getting over. High income voters are happy because they're getting their loopholes. Politicians/accountants/lawyers/lobbyists are happy because they're making money off the two sides fighting against each other.

I also don't understand why a flat tax would be any harder for politicians to manipulate. Another president like George Bush could just as easily come in and come up with a reduced flat rate for dividend income as the original W did, and law could just as easily be written that shelters income from taxation. What manipulation would a flat tax prevent?

It would be harder to manipulate because if you took away everyone's preferential treatments then you've maximized the uproar if congress ever tried to give one group their goodies back. Think of it like a group of 5 year olds, because that's about the emotional and intellectual level our nation's debate about taxation is on. Take away everyone's cupcakes and everyone will get over it. Follow that up by trying to give one kid his cupcake back and let's just say that will meet with significant resistance from the others.