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What does everyone think about a flat tax?

I haven't seen this talked about much on here, so I thought I would ask. I personally support the concept because I think it would be the only way to be completely fair with our taxes. For instance, institute a flat 10% tax on everyone. That way if you make more, you pay more. If you make less, you pay less.

What do you ladies think?

 
MommyRust

Asked by MommyRust at 3:56 PM on Oct. 3, 2008 in Politics & Current Events

Level 2 (13 Credits)
This question is closed.
Answers (10)
  • I do taxes for a living....you could still have credits when in a flat tax structure.

    I don't like our current tax structure, but right now the lower levels do not pay any taxes plus they get some money back with EIC that they didn't pay in. However, I do believe that I would be happiest if we were taxed (actually I like Ron Paul's plan but if have to have taxes) on what we spent instead, similar to what Huckabee wanted to do.
    Anonymous

    Answer by Anonymous at 5:04 PM on Oct. 3, 2008

  • I think that this is the ONLY fair way to do things.
    DusterMommy

    Answer by DusterMommy at 4:06 PM on Oct. 3, 2008

  • i think i would agree, it would definitely be fair..but you know there are people who'd find a way to whine about it.
    HayleyGM

    Answer by HayleyGM at 4:08 PM on Oct. 3, 2008

  • That would be cool.... it would at least let us keep the majority of the overtime pay my husband works for... but don't get to keep.
    PaceMyself

    Answer by PaceMyself at 4:08 PM on Oct. 3, 2008

  • A flat tax on income is unfair to the people at the low end of the economic ladder. Imagine this: Family A brings in $60,000 per year, and pays $6,000 annually in taxes (10%). This same family (2 parents, 2 kids) pays $4800 for food, $1800 for medicines and $16200 for their mortgage.

    Family B (also 2 parents, 2 kids) makes $30,000 a year and pays only $3000 in taxes. They also pay $4800 for food (not poor enough for food stamps), $1800 for medicines, and -let's say- $12,000 in rent because they couldn't find an affordable house to buy.

    Family A has spent 38% of thier gross income on food, medicine and housing, leaving $45,780 remaining for utility bills, car payment, day care, gas, and everything else. Family B has spent 62% of their income on food, medicine and housing, with just $8400 remaining for those same additional expenses as Family A.

    [continued below...]
    yarnjunkie

    Answer by yarnjunkie at 4:44 PM on Oct. 3, 2008

  • [...continued from above]

    Obviously, a family making twice the income will have a higher standard of living, but the lower your income, the higher percentage of your money is spent on basic necessities. With a flat tax, the poor are more likely to not be able to pay for food, heating bills, and other basic needs. Under our current system, Family B likely pays little or no income tax, by the time you factor in the per-child tax credit, the childcare tax credit and the standard deductions. This returns their badly-needed $3000 to them.

    My family is much closer to being Family A, and I am not so selfish as to begrudge Family B of that $3000 in taxes. They need it far more than I do. And it could be more than made up by closing the many corporate tax loopholes in our current tax law.
    yarnjunkie

    Answer by yarnjunkie at 4:46 PM on Oct. 3, 2008

  • In response to yarnjunkie, my professor in an economics class I took made it seem (and I could be wrong on this, I don't profess to completely understand it) like their would still be a way to still institute credits, such as the child tax credit and the earned income credit, and yet still have a flat tax. Is that not possible?
    MommyRust

    Answer by MommyRust at 4:53 PM on Oct. 3, 2008

  • You ladies should look up the Fair Tax. It proposes that we are only taxed on money we spend on new items, instead of our income. People would be able to keep their entire paychecks each week. This would mean people would be encouraged to recycle and by used. And all those people who make money under the table, (like drug dealers, and prostitutes) who still spend that money, would be paying taxes too. I think this would be so much more fair than any kind of income tax.
    my2.5boys

    Answer by my2.5boys at 5:54 PM on Oct. 3, 2008

  • I like the idea of the flat tax with credits inside for the low/middle class. Only if they don't put in some kind of loop hole for the top 10%.
    akhlass

    Answer by akhlass at 9:44 AM on Oct. 4, 2008

  • Right now the poor pay little or none. Matter of fact the same family B would likely get a refund of $2500-$3000 which they had paid in no tax. How can that be?? You can get a refund, but you didn't pay any in? 


    So in the end "yarnjunkie" you are basically against the poor paying their fair share.  I was under the impression that Biden said we should all "share" and be "fair." 


    Anonymous

    Answer by Anonymous at 10:55 PM on Oct. 6, 2008