To help jump start our economy could a new flat rate tax system across the board for the rich and not so rich be a solution to our economic problems?. Maybe on the order of 2.5 percent. Please give your opinion.
Business Forum
FLAT TAX RATE
New Topic
Post Reply
Follow Topic
Page of 1
- Message
I`m not real sure what you are asking.
Are you saying everyone should pay the same rate or are you saying we should eliminate tax deductions? Two very different things.
A flat rate where everyone pays the same rate creates a system where the poor shoulder a disproportionate amount of the tax.
A system that eliminates tax deductions eliminates the govt`s ability to encourage certain activities like saving for retirement (401K/IRA/Simple) or some of the energy conservation credits. Not to mention the special interest groups in Washington would never allow their credit/tax deduction to be eliminated.
-------------------------
http://www.slowcookermate.com
http://www.twitter.com/yslowcook
The poor are already paying the largest percentage of their income for federal taxes. Look at the federal tax rate schedule. If you have $2 of taxable income, you have to pay $1 in federal taxes. I am all for flat tax rate, and eliminate all tax credits. The tax credits only help the rich get richer, and they are the ones who cheat the most on their tax returns because of trying to include non-eligible items into what they can take tax credits for.
The poor, are poor, so most of them can`t even itemize deductions, and most are paying 10% of their income for federal tax. I think anybody who makes less than $25,000 yearly income, should not have to pay any tax at all, it shouldn`t even be deducted from their pay checks.
And charge 10% flat tax rate for everybody across the board if they make over $25,000. No tax credits, nothing. The poor can`t deduct their gas expenses driving back and forth to work or their car insurance, they can`t deduct a clothing allowance for clothes they need to wear to work when employer dictates "business like attire", or their work shoes, or their vehicle to get them to work, or their lunch money. But, by golly, the wealthy sure does this. They call them "business expenses", so why can`t the low income people be allowed to claim "just trying to survive" expenses.
During the presidential discussions, they just kept referring to the Middle Class, and the wealthy, no body was fighting for the low income people, like they aren`t even in a class. Well, they are. They are in a class on their own, nobody ever looks out for them. Whats that old saying? "whats good for the goose, is good for the gander". Well, whats good for the rich, should be good for the poor. I`d like to see Washington personnel live for 3 months just on "minimum wage". ha
I`m personally in favor of the Fair Tax. Think of it as a consumption tax - the more you buy, the more you get taxed. By definition, the extremely wealthy will pay more in taxes because they purchase more goods and services. Mike Huckabee ran with this idea on his platform - it`s been around for several years, but I think it`s really starting to get some traction.
Of course this plan could possible do away with 90% of the IRS - wait that`s a good thing!
Of course this plan could possible do away with 90% of the IRS - wait that`s a good thing!
Hello, friend and thank you for your reply and thanks to the others who also gave their response. If you remember I did not mention the poor specifically becouse under this flat rate tax they are not going to pay until all their basic needs are met. This idea of tax relief will take into account the expenses each person or household will need to survive on. With today`s average standard of living $25,000.00 is a good start. In other words, the burden should not be more than a person can handle.
A flat tax rate bill has been introduced numerous times in the U.S. Congress. The rate was 10%. There would be no IRS and the program would save millions of dollars a year in operational cost currently spent to collect income taxes. It was also estimated that more money would be collected under this system than the current system.
However, there would be NO EXEMPTIONS for anybody or any organizations. Not surprising, the bill has never made it out of committee to the floor of ether house for a vote.
-------------------------
The older we get, the more excuses we make for not chasing after our dreams. But truth is, goals are attainable at any age.
However, there would be NO EXEMPTIONS for anybody or any organizations. Not surprising, the bill has never made it out of committee to the floor of ether house for a vote.
-------------------------
The older we get, the more excuses we make for not chasing after our dreams. But truth is, goals are attainable at any age.
There`s some very practical reasons why we don`t have a flat tax in this country. The biggest one is that it removes a lot of incentives to own your own business (if you`re talking about no deductions.) Same goes for the "Fair" tax, which would have the effect of discouraging the exchange of money and would in turn slow down the economy. Both of these systems would place a much higher amount of overall tax burden on the middle class, and they would hurt economic growth. Getting rid of the IRS won`t mean we don`t have to pay taxes. At least we`re way ahead of the game as business owners already.
As a forced early out retiree from IRS (I had 30 + years), I can say they are headed in the direction of not actually getting rid of IRS totally, but within the past 8 years they have had to cut the staffing by hundred thousand jobs. They have turned to "outsourcing" a lot of the jobs to the private sector, and continually eliminate jobs, thus offering early out retirements, and some are even offered a buy out incentive to retire early. (depending on the field you were in).
Gee, 8 years, that just dawned on me, thats how long Bush has been in office. Imagine that.
kywomanjt... sad to read that you worked for the IRS.. not to sure what you did.
Your statement "If you have $2 of taxable income, you have to pay $1 in federal taxes." is so false it is ... Sounds more like you are receiving Social Security (due to your early retirement) and found out that if you work above a certain dollar amount.. you have to pay back $1 for every $2 earned over $13,560 in 2008 to Social Security !!
I have a much better idea than the Flat Tax... How about taxing Social Security !!
Once the receipient receives all the money that was paid into the system plus a % interest based on their cumulative contributions by quarter......
Let`s see after 4-5 years of receiving Social Security... than all that money.. which everyone
else is putting into the system.. and you are taking out of the system... gets taxed !!
CORRECTION: A single person who has wages of $25,000 for 2008 has an `ordinary tax` of $1,605 which works out to 8.04% ..
AND..
No one.. neither the poor nor the rich.. is allowed or does the following.. unless they are unscrupulus.. because it is illegal !! and the rich are not that stupied !!
" The poor can`t deduct their gas expenses driving back and forth to work or their car
insurance, they can`t deduct a clothing allowance for clothes they need to wear to work
when employer dictates "business like attire", or their work shoes, or their vehicle to get
them to work, or their lunch money. But, by golly, the wealthy sure does this. They call
them "business expenses", so why can`t the low income people be allowed to claim "just
trying to survive" expenses."
As to attrition within the IRS.. technology reduces the amount of manpower needed for certain jobs... that has been going on for over 25 years across the board in all large businesses.
SIDE NOTE: the IRS is looking to hire at least 600 people just to do audits to close that $290 billion dollar tax gap...
By the way... our greatest problem remains... mismanagement !!
-------------------------
Warmest regards, Patricia Masters, EA EA = Enrolled Agent = only tax professionals who receive their license to represent taxpayers (you) before the IRS from the U.S. Treasury.
Page of 1
Post ReplyAdvertisement
Keep the Community Clean!
- StartupNation forums should be used as a platform to learn, educate others, share stories, tips & tricks and to provide constructive feedback.
- Please do not use the Forums for advertising & blatant self-promotion.
- Please be respectful to other members and refrain from personal attacks and vulgar language.
- StartupNation reserves the right to delete any message, reply, and/or member who violates our terms of use.
Advertisement
Advertisement
Advertisement
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
DC
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennesee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
DC
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennesee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Advertisement
Contact Us
Privacy
Terms of Use
Become a Marketplace Provider
Advertise
Local Guides
Site Map
Home Business
Start a Business
Copyright © 2013 StartupNation.