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Flat Tax or Fair Tax?

Sean245 Wrote: Jan 31, 2013 12:13 PM
I think a flat tax without any deductions, credits or income thresholds is the only answer. I would propose a 1 or 2% tax on all income regardless if someone earns a nickel a year or a billion dollars a second. Then begrudgingly compromise with the Demorats for up to 3% if you have to. If you allow any deductions, prebates or a progressive tax system you hand the leavers of power back to the politicians and once again our tax system would be used to buy votes and modify behavior. I would also propose a national tax payer burden act that would forbid anyone from paying more than 10% of their income in taxes at any level. In other words, if the city charges you 10% in taxes and you pay it, you’re done. The state and federal taxing agencies
Arley2 Wrote: Jan 31, 2013 2:31 PM
Looks like you'd have a hard time getting a 10% flat tax plan to pass.
1. Federal Government spending is 6.3 trillion.
2. Current Federal tax revenue is 5.6 trillion.
3. GDP is 15 trillion.

So for the FEDS to get an amount to waste equal to current revenues, it looks like a flat tax would have to be in the neighborhood of 30% of GDP, On the other hand, right now 47% of the population pays zero income tax, so maybe that would level out a bit..................say to a 20% flat tax paid BY EVERYBODY.
Sean245 Wrote: Feb 01, 2013 12:54 AM
20% is way too high, government has to make some hard choices, cut programs, eliminate agencies, stop all grants and foreign aid. Congress could use that right-wing document called the Constitution as a guide to what spending should be authorized.
Sean245 Wrote: Jan 31, 2013 12:13 PM
...would have to fight the city for their portion of the 10%, but either way you’re out of it. Government at all levels would have to acknowledge that they are not taxing in a vacuum and would have to work their budgets and tax rates together to get what they need.
It’s a pipe dream I know. I also know that even if we had the second coming of Reagan we would still never get rid of the IRS or our current tax code, it will only grow in complexity and tyranny.

I’m at Hillsdale College in Michigan for a conference on taxation. The event is called “The Federal Income Tax: A Centenary Consideration,” though I would have called it something like “100 Years of Misery from the IRS.”

I’m glad to be here, both because Hillsdale proudly refuses to take government money (which would mean being ensnared by government rules) and also because I’ve heard superb speeches by scholars such as Amity Shlaes (author of The Forgotten Man, as well as a

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