Why are the candidates so in love with the existing, corrupt, hair-ball tax code we have now such that they have to hedge their bets by offering flat-tax “options?”
they should be PROUD to say they will eliminate it.
They always talk about flat tax then discard it in the general election.
This is why Cain’s pitch is more creditable, it isn’t likely to be discarded immediately upon winning the primary.
So Newt is Perry’s ‘Stalking Horse’.
One of the major problems with a tax based solely on income IMO is that it fails to recognize the underground cash economy. At least if we have a consumption-type tax we will capture some of those dollars. There is no realistic way that the IRS will ever be fixed. It needs to go in its entirety.
By further comparison with both flat tax proposals, that thread also includes some lively discussion on the argument that Cain's 999 plan is no more than "sloppy reparations." !
:O
I notice that just about every presidential election someone comes up with a new tax plan that resonates with the voters but never seems to get implemented.
These tax plans from Cain, Perry and whomever sound good, but the chances that we will ever see any of these tax plans put into place.
The problem with a flat tax is that it increases the burden on the poor, who currently pay no tax. And under burdens the more prosperous, who are currently paying higher taxes.
A national sales tax in lieu of income taxes is great idea because everyone contributes. But it needs to be a graduated sales tax.
Our current tax structure (simplified) is a graduated tax structure. An individual w/o a mortgage & children pays more taxes vs. an individual w/ deductions. The problem is that the current deduction structure has too many special interests cases.
The perfection of our capitalist system is that it encourages people to make as much money as possible but our tax structure penalizes individuals for being successful. People should be free from paying taxes on ANY income generated. If a person doesn’t want to spend their money, great. The individual(s) who inherit that same money will eventually spend it. Wealth is meaningless unless it can provide benefit to that individual(s).
Utilizing a graduated national sales tax would benefit all of society because everyone contributes. There would need to be some tax exceptions on life essentials: food, medical, utilities, home…. But everything else is taxed.
The poor who need a car spends $1k and pays X% in sales tax. The wealthy who wants a luxury car, spends $100k would pay Y% in sales tax. If the wealthy don’t want to pay Y% in tax, they can buy a $1k car. They both provide transportation to the standard of living for the individual and it maintains the core right everyone wants: THE ABILITY TO CHOOSE (FOR THEMSELVES).
I’m not an economist so this is just a crude example. Some would call this a luxury tax, but the taxes paid are the individuals choice! They can choose to purchase a $500 TV or a $10,000 TV. They both provide the same end result but the taxes paid remains the individual’s choice. This could also be applied to corporations.
Item Cost ,$ Sales Tax, %
0-100 2%
100-500 3%
500-1k 4%
1k-5k 5%
5k-10k 6%
10k-50k 7%
. . . . .
2M 20%
I notice that just about every presidential election someone comes up with a new tax plan that resonates with the voters but never seems to get implemented.
These tax plans from Cain, Perry and whomever sound good, but the chances that we will ever see any of these tax plans put into place are slim and none based on history.
In the meantime, the Congress continues to add pages to what has become the most absurd, unwieldy and unmanageable tax code in the world. Regardless who gets elected next year, I don’t expect that to change.
Actually, Michelle Bachman had this proposed days ago. The others are jumping on the bandwagon. Where is Steve Forbes cheering for her?
Screw this politics and just do the right thing.
Making a new flat tax "optional" is a political maneuver; I don't have a problem with that.
It's not a new idea. Forbes did the same in '96 and '00.
Mark Levin's praised the "optional" idea on his show today.