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43 states have income tax. 8 of them have flat tax rates (which are sometimes begin labeled as progressive. Ther rest have rates that increase with income level (being called progressive by some). https://en.wikipedia.org/wiki/State_...ual_income_tax
Frankly I would love to see flat taxes applied at incomes over $50,000. Long ago, a study was done and determined 15% across the board with no deductions or exemptions would provide considerably more revenue and more than enough for the then Federal budget and deficit plus about half again more.
But then what we we do with 850,000 unemployed accountants?
43 states have income tax. 8 of them have flat tax rates (which are sometimes begin labeled as progressive. The rest have rates that increase with income level (being called progressive by some).
No sensible person has ever described a flat-tax as progressive. Even the structures of states that have rate step-ups have to be examined for their effects in the real world.
Quote:
Originally Posted by Coldjensens
Long ago, a study was done and determined 15% across the board with no deductions or exemptions would provide considerably more revenue and more than enough for the then Federal budget and deficit plus about half again more.
If it ever actually existed, that study was a load of crap. Just like all the so-called "Fair Tax" studies. It's all just a transparent rich-person campaign to shift tax burden off of wealthy people and onto everybody else. There is nothing more to any of it than that.
It's extra enjoyable to me listening to pub911 bumble around talking about taxes seeing as how that's what I do for a living at a high professional level. The economic garbage that spews forth is one thing, but when he or she gets going on taxes, it's a special treat.
See, normally people who actually do know a particular feild understand the depth of how much there is to know, know how much they don't know. But when you think you know everything about every topic....Haha. And then to never admit there ever could be an error in anything you say and to never ONCE admit to being wrong.
It's like a caricature. So glad for the ignore feature so I only need to see the garbage spew when someone quotes it.
Pub-911: when it comes down to it he/she has a dogma, like a religion, hence its based on emotion. And the "confidence" in his own ex cathedra pronouncements (seen through by the attentive but swallowed by the less knowledgeable) that comes with being emotional about something & committed to dogma but not entirely informed.
No sensible person has ever described a flat-tax as progressive. Even the structures of states that have rate step-ups have to be examined for their effects in the real world.
If it ever actually existed, that study was a load of crap. Just like all the so-called "Fair Tax" studies. It's all just a transparent rich-person campaign to shift tax burden off of wealthy people and onto everybody else. There is nothing more to any of it than that.
That sort of rationalization definitely helps your problem of confirmation bias. A specious dismissal of the study as a plot - now you can move on quickly eh?!
But then what we we do with 850,000 unemployed accountants?
They won't be unemployed. You still have define income in some fashion and there will be exceptions, there always are (tax free reorgs, like-kind exchanges, involuntary conversions, deferred compensation, equity compensation, carried interest, etc. etc. etc.)
It's not all about rates and deductions, the whole system will always have complexity.
43 states have income tax. 8 of them have flat tax rates (which are sometimes begin labeled as regressive in this thread). The rest have rates that increase with income level (being called progressive by some). https://en.wikipedia.org/wiki/State_...ual_income_tax
Frankly I would love to see flat taxes applied at incomes over $50,000. Long ago, a study was done and determined 15% across the board with no deductions or exemptions would provide considerably more revenue and more than enough for the then Federal budget and deficit plus about half again more.
But then what we we do with 850,000 unemployed accountants?
Had to fix that. Stupid autocorrect.
A flat tax that starts at $50,000 is great for poor people who then pay no tax at all. Good for lower middle class who pay little or no tax. Somewhat hard on upper middle class and highest amount of dollars by less percentage from the upper middle class for the very rich.
Right now the very rich pay very little. The poor pay very little or nothing, The upper middle gets stuck the most. So a flat tax does not change a lot, except it gets rid of stupid deductions that do not make much sense. However apply the flat tax to corporations and you take away Congress' ability to attempt to control corporations through taxes and breaks (a good thing to eliminate IMO) and your tax revenue jumps through the roof.
They won't be unemployed. You still have define income in some fashion and there will be exceptions, there always are (tax free reorgs, like-kind exchanges, involuntary conversions, deferred compensation, equity compensation, carried interest, etc. etc. etc.)
It's not all about rates and deductions, the whole system will always have complexity.
A flat tax that starts at $50,000 is great for poor people...
It's simply a regressive tax that kicks in at $50,000. The nature of the tax itself isn't changed merely by shifting its start point.
Quote:
Originally Posted by Coldjensens
Right now the very rich pay very little. The poor pay very little or nothing,
If you are talking about federal income taxes, the rich pay quite a lot, while the poor have rates BELOW ZERO due to refundable credits such as the EITC and ACCC. If you are talking about all taxes at all levels, the bottom 20% lose about 16% of their incomes to taxation, while for the top 20%, it's about 30%.
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