Posted on 10/24/2011 1:45:55 PM PDT by smoothsailing
So, all the folks that aren't in the no-brainer areas will get to calculate their taxes the old way, keeping up with receipts, making sure they don't miss any changes in the law, hiring a professional for when things get too complicated, and THEN, get to figure it the new way. Well, that sounds like a time-saver! In other words, the tax-code will be thicker because of this plan. We keep what we have, and add on.
I'd be happy if they just would read headlines! LOL!
$50,000 salary with a two person household:
Under Perry:
.20 * $25,000 = $5,000 flat tax
+.05 * $50,000 = $2,500 payroll taxes at the 2012 rates
= $7,500 total taxes. (42,500 take home)
Under 999
.09 * $50,000 = 4,500 income
.09 * $45,000 = 4,095 sales tax if EVERYTHING is taxable
= $8,595 taxes (41,405 take home)
However:
If only 75% of what I earn is taxable, then $7,571(42,429 take home) in taxes.
If my employer passes on the saved(current) payroll taxes and everything is taxable:
$4,775 taxes on the new 53,060 income.
$4,346 sales taxes at 100% of take home pay
$9,121 total taxes (take home of $43,939).
Change that to 75% taxable = $45,025.39 take home pay.
Just to run some numbers. The only way to come out ahead under Perry is to have more dependents. This won’t work for me.
I’m not going to argue with you on the empowerment zones. That is the only part of the 999 plan that I don’t like.
We conservatives keep saying that 50% of people don’t pay taxes. It isn’t true. They don’t pay income tax but there are a lot of other taxes they do pay. The largest of which is the corporate taxes hidden in the price of goods. Most poor people are just too stupid to know when they are being taxed. They want to tax the rich, evil, oil companies and they want to punish Walmart for making so much money but don’t realize they are screwing themselves over.
Okay, smartass.
I’ve been waiting for a flat tax for 30 years. In my book, a flat tax is just that, a flat tax. Period! You either have a flat tax or you don’t. The options of either choosing to stay with what you have now, or going with a 20% flat tax sounds crazy. I’ll wait for the details tomorrow and then evaluate some expert analysis before totally condemning it. Right now, this doesn’t look good at all.
Surely, but even the word “optional” was controversial because one interpretation was that paying income taxes would be optional, and the reaction to that was “sounds crazy”.
However, the option was to choose the current IRS code OR the Perry flat tax...
Surprising to me, because this is a good guy who wrote that.
I hope he feels better now, but he’ll have to weigh in on that...
It's unlikely that phase 1 would ever get passed. There's not a snowballs chance phase 2 ever would.
In your example I believe that you forgot to include the $3825.00 in payroll taxes you will continue to pay under Perry’s flat tax and won’t under Cain’ 9-9-9 plan.
Ok, but I just happen to disagree. Each individual would be able to choose, so that they would not be disadvantaged compared to what is true now, or what is true under the flat tax plan.
I don’t yell and scream that it isn’t either or. In a perfect world, which this ain’t, maybe I would, but not in reality.
The screamers on here immediately screamed that they would not benefit from Perry’s plan. Like it or not, that’s how people are. Before they get the details they scream. After they get them, if they do rough calculations and still scream, the perfect answer is, you pay under the old code or under the new flat tax, your choice.
I like the huge personal exemption per person under the Perry plan, and I am against a national sales tax on everything I buy and I am against Cain’s “empowerment zones”.
It will not deal break it for me if Perry’s plan let’s people choose. I can see the reasoning.
DING! DING! DING! We have a winner!
Can you say REPARATIONS?
Let’s say 50% of all taxpayers chose the Flat Tax Option.
Wouldn’t it be fun to have a President Perry who used that as the justification to reduce the funding of the IRS by 50% ! :)
Wouldn’t that be 20% flat vs. 9% income plus 9% sales plus complicated calculations to “empower” favored groups?
Maybe because Perry hasn't been running for years like Myth and Cain? Maybe he wants to make sure he has a sound viable plan to put forward, so he doesn't have to tweek it later, unlike Cain?
Yes.
“Sure it is. It keeps the whole IRS that already exists and adds government jobs by creating a whole NEW IRS department to handle the flat tax ...”
Uh huh. That whole -20% on the calculator may be out of the reach of all but the very smaht.
Of course, the whole state tax, assorted fees, sales taxes and the new VAT taxes, the chaos in handling defaults if you paid a sales tax and the company failed to report it and the other taxes that are based on the current progressive model...yeah...you’re way will be much simpler.
Don't be fooled. Perry has been planning a run for the presidency for years. He just didn't officially declare his candidacy till after the 140-day regular session and 30-day special session of the legislature were over.
Making it an option between 20% Flat Tax vs. Current IRS Code, will just exacerbate inequities in tax collection.
Now those with the ability to lobby political influence and pay armies of tax attorneys to understand the code, will pump the existing code full of even more arcane exemptions and deductions for themselves, with the excuse of, “well if you don’t like it, pay the 20% flat rate, LOL!”
No, I believe you will need to add the 7.65% payroll taxes to Perry’s plan and the 9% sales tax to all goods and services for Cain’s.
- - - - -
On a separate thought, I see the optional side of the Perry’s flat tax a bad idea. We don’t really clean up the tax system by adding a new one while keeping the old in place.
My initial thought is, where’s the beef? Perry’s proposal is not what I expected. Its not a flat tax. Its an either or choice with two tax options. It still trumps the 2-phase/999-909/fair tax plan that Cain is proposing. However, not convinced either plan would become law.
For now, I’ll keep my powder dry and hold my fire for further details and analysis.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.