Should the US adopt a "Flat Tax"

[srt8madness]

OK peeps, Ya'll are confused, and that's why Done is saying what he is

FEDERAL income tax
social security
Fica

Federal income tax is only a percentage of taxes taken out.
What people don't realize, you can replace the FIT with a flat/fair tax, and you're still
going to be paying social security and fica(medicare) taxes aswell. So the great
majority of people would see an increase in taxes, plus(or minus) the fact that many tax
credits received now would go away.

So you might pay >15% in tax, but unless you make about 250,000 or more, you aren't paying 15% federal income tax.

[jonny]

Just to clarify, I think you mean refund rather than return. If so, a refund just means that you probably overpaid on the withholding on your paycheck (interest free loan to the gov't). You can't tell how much someone has paid in taxes because they get a refund or the size of the refund is large.

Too many people get back FAR more than they paid into income taxes... thousands more, to be precise. If you doubt it, research the earned income tax credit. I know personally several people that typically pay in a few thousand a year, and get back at least twice that. Several of my past girlfriends with children, so I am intimately aware of what they paid in, and what they got back.

Not only do they NOT actually pay taxes, they get back more than they paid in.

According to the IRS Tax Tables for Married filing jointly, one would have to have gross income in the area of $500,000 (depending on deductions) to be paying Federal Income Tax at a rate of 30%. Congratulations on your success.

I am single, so I pay more than a married couple does for the same amount of income... considerably more, and have fewer standard deductions.

I consider the state income taxes that I pay to be a tax on my income.

Not all states have an income tax.

OK peeps, Ya'll are confused, and that's why Done is saying what he is

FEDERAL income tax
social security
Fica

Federal income tax is only a percentage of taxes taken out.
What people don't realize, you can replace the FIT with a flat/fair tax, and you're still
going to be paying social security and fica(medicare) taxes aswell. So the great
majority of people would see an increase in taxes, plus(or minus) the fact that many tax
credits received now would go away.

So you might pay >15% in tax, but unless you make about 250,000 or more, you aren't paying 15% federal income tax.

The basic idea of a flat tax, and few people will argue the basics of it.... one flat tax. No income taxes, no FICA... one, flat tax.

Many people currently pay more than 50% of their income in taxes of one form or another. They just don't realize how deep it runs.

[Mr. iNCREDIBLE]

^ You can live within your means using credit as a finanical tool....But yes you just can't go overboard. Economic growth would no longer exist without credit.

yes but the majority of people including those in charge of this country don't use credit that way, they see it as additional income as additional money to buy crap they don't need.

[slideway]

yes but the majority of people including those in charge of this country don't use credit that way, they see it as additional income as additional money to buy crap they don't need.

Yup, True that. The main point of your statement was not lost on me, Abuse of credit is the main reason we are in a stalled economy again right now. Abuse by everyone- government, commercial inst's. and us consumers. To many powerful people and little crooks and the like have taken fraudulent loans to purposly default on them pocketing the money.

[S. Artee]

Can we make sure they abolish the AMT as well?

[NOLA_DODGE_FAN]

can we make sure they abolish the amt as well?

amen!

[netnathan]

How about Fair Tax?

Americans For Fair Taxation: Americans For Fair Taxation

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[lafrad]

The rich do not pay pennies. If you believe that, I have beach front properties in Kansas for you to look at.

Consider this, you start your company from scratch, do well and make some good money. 30 years goes by and you're now taxed personally (53% federal) so you stop earning your own money in June. From July to December you're working for the government.

The government can only give to someone that which they have taken from another.

A flat tax, or fair tax, is a great idea. Everyone pays say 15% income tax to the Feds, and the states are limited to say 10%. I would gladly pay that.

Our biggest problem is term limits. Put those in place in both the house and the senate, and make themselves short. 2 or 3 terms. That alone would solve a ton of issues.

I agree with you 100% concussion, but you are referencing the wrong people.

The people who have the most money, the ones that are the true "upper class", did not build a business. did not work their ass off to get where they are. they do NOT pull in all sorts of incoming from a storefront, or service center, or anything. This isn't to punish the true winners of the "American Dream"



Its referencing all the people who have a yearly paycheck of $1, but a net income of Multi MILLIONS. Stock options, dividends, benefits, etc, all sources of income that go directly around income tax and get taxed at a *much* lower rate.

THAT is where all the money is in the country.

The 50% of income earners that don't pay "income tax" have so little income for ALL COMBINED, that even a 50-75% tax rate for them wouldn't even come close to just "adjusting" the 15% rate on investments to something that's in line with actual income tax levels.

[MattRMagnum]

I believe a flat tax would solve a lot of our problems.
A flat 15% would be great. Especially for the "middle class" and under (which is most of us).


Why is it NEVER even discussed in our Government? Because the rich would loose the most, and they have the most power in our Government.
And it would near put the IRS out of business (Yea).

What do you think?
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Actually, you're entirely incorrect on this. It wouldn't affect the super rich. Everyone else would just pay a lower tax rate. Read this:

http://www.nytimes.com/2011/08/15/op...uper-rich.html