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To: 2ndDivisionVet
I call this an optional “flatter” tax rather than an optional flat tax, in that Fred has more than one tax rate. Still it’s a major step in the right direction. I prefer the single rate 17% that Forbes ran on 8 years ago and that Dick Armey and Phil Gramm had previously pushed. Adding the option of sticking with the old system is likely the key to getting a flat tax through politically. Fred’s not the first to come up with it, but kudos to him for recognizing a good thing. I don’t know if Rudy has anything specific out for a tax plan, but he’s got Forbes on his team so must be pushed in this direction. I suspect he’d go for something along Fred’s lines.
5 posted on 12/10/2007 8:32:10 PM PST by JohnBovenmyer
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To: JohnBovenmyer; 2ndDivisionVet

Well, it lacks the other aspect of what I would call a “Flat Tax”, in that it still excludes huge chunks of income with its standard deduction.

The result is that a family of four can earn $49K and contribute NOTHING to the running of the government that protects their freedoms. They can even vote for government giveaway programs to their hearts’ content, secure in the knowledge it won’t cost them a dime.

If I were Fred, I’d be honest with the American people and say, “Every American should be willing to pay some taxes to support the government that provides so much to ensure their safety, security, and freedoms. To that end, I propose eliminating all deductions and using a three-bracket income tax with very low tax rates. Those rates would be as follows:
(1) 5% on income up to the poverty level,
(2) 10% on income between poverty level and median income,
(3) 15% on all income above the median
Zero corporate income tax, all capital investment expensed in the year spent, with all net corporate income imputed to the shareholders”

Contrary to what Dems believe, the problem with tax revenues is not that a relatively few taxpayers with high incomes aren’t paying enough. The problem is that there are huge numbers of taxpayers at the low end that pay nothing, but vote for more government spending.


26 posted on 12/11/2007 10:51:17 AM PST by Kellis91789 (Liberals aren't atheists. They worship government -- including human sacrifices.)
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