If a flat tax was implemented having exclusions like food, but a higher rate on luxury items would it work?
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Great info here! I was not surprised about the government wanting to control us, just hoping as a country we could ban together and get things back to the way they should be. Our founding fathers are turning over in their graves! Thanks for sharing
I happen to think the flat tax is the fairest way to ban together. But it's not appealing to those who don't pay any tax now, or pay a nominal amount. When I was 14 I didn't care if I left the lights on, because I didn't pay the electric bill.
One more thing to keep in mind--People who are retired and living on Social Security, which depending on total income is not taxed, would be faced with your flat tax. I really like the idea. I just see a whole much of problems to resolve.
That could be easily addressed by eliminating numerous other tax burdens that effect retirees, like taxes on dividends and interest, or even a standard deduction. They tend to have more in assets than in earned income at that stage.
Or issue retirees something like a tax exempt card that they can show when purchasing necessities like food. No one can get out of paying taxes entirely but we could make it doable for those retirees.
That would be too complicated I think. The goal is simplification. I just want to make sure nobody pays zero. If there's no skin in the game, people vote for nonsense. I never turned off the lights when I was a kid because I didnt pay the electric
Not really, if they are carrying a medicaid card or something they are already issued like that from the government they just use that to get some things exempt. It's not that they wouldn't be paying but because they've paid so much already.
Programs like medicaid are riddled with fraud. I would not want another program where the gov't in in charge of verifiying things like that. They're just too inefficient.
When they retire they should be issued something that states they are retired. I agree about the gov't keeping tabs, but we've all paid into it. Maybe joining something like AARP (which is reasonably cheap) could be the identifier.
I don't think it's fair to tax necessities like food, but not much else. @Larry Wall, yes I was thinking along the lines of a sales tax where everything but the exceptions get taxed, that way everyone pays their fair share on everything.
I would add other sales taxes, medical expenses and gasoline. Gas tax in my state constitutionally. California will scream. In theory you have a good idea. Conflicts will stall it for years.
Stated in its simplest form but I tend to agree.
I understand your explanation so I'm going to take it one step further. Eliminate each person filing taxes at all. Stick with flat tax, keeping essentials like food exempt. I know this is pie in the sky but thought it might be interesting.
Are you talking about a value added tax, like a sales tax? Rich people spend a smaller portion of income than poor. So the tax is a bigger burden for the poor.