nu awlins ag said:
eric76 said:
nu awlins ag said:
Hornbeck said:
I am all for a flat tax, but you guys are coming way close to a Libertarian view.
Different rates for different incomes. Flat tax would never work. A better solution is a "use tax". Spend more pay more. If I want a BMW and can afford it and the use tax, go for it. With an absolute flat tax, there will still be many not paying anything and some paying too little. Create 2-3 brackets and I think you have a solid point.
So you want to bring back the disastrous Luxury Tax passed in 1991?
It was a true disaster then. What makes you think it wouldn't be a true disaster (or worse) the second time around?
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I never said that. You can't have one flat tax for everyone, don't be obtuse. You have to have 2 maybe 3 for every one. Do the math yourself and get back to me. Seriously…
As always, the answer is to increase the tax BASE.
Based on our current actual working population, if we merely added 10% of the working age people who are not part of the labor force, we could actually decrease taxes over a thousand per person and still net the same amount of the total individual taxes we have now. Not to mention more payroll taxes and consumption taxes.
But you're actually right. A 10% flat tax would drastically lower income tax revenue, as the overwhelming majority comes from the higher end. There isn't enough of a tax base to realistically add to make up the difference you would lose.
But again, lowering taxes for the most productive subset of American, the ones most likely to invest and start companies, while gutting the entitlement system and drastically cutting regulations, would lead to an absolute boom in the economy. I'm not sure how to calculate the tax benefits of significantly more people working, participating, and spending in that economy, much less the massive increase in corporate tax income. But that scenario would be most ideal.
Unfortunately, it truly is a meaningless exercise UNTIL the entitlement system is brought to its knees and spending cut by more than half, which is not possible without overwhelming majority buy-in since the most spending is on non-discretionary (interest on the debt, military, and entitlements).
"H-A: In return for the flattery, can you reduce the size of your signature? It's the only part of your posts that don't add value. In its' place, just put "I'm an investing savant, and make no apologies for it", as oldarmy1 would do."
- I Bleed Maroon (distracted easily by signatures)