Any down side to a flat tax?

[Marc Paolella]

Originally Posted by freemkt

That's why I believe estates are entirely the wrong thing to tax - it's inheritances that should be taxed, at the individual's ordinary income tax rate (which is usually lower than the rate at wich estates are currently taxed). But I would make the tax payable, without interest, only when cash is realized, hence nobody would ever have to sell an asset in order to pay an inheritance tax.

I guess we differ. I would abolish the inheritance tax entrirely. I do not see why the state should have a right to any part of what one individual gives to another, either in life or in death. Same with the Gift Tax. I would abolish that too, and for the same reason.

[mkpunk]

I think the flat tax can have a downside as those who make less (a large majority of Americans) pay more of their money that they need, than the 1-2%ers who would not need as much to actually live. That is where the rub exists.