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Old 03-13-2007, 11:46 AM
 
Location: Lincoln, Nebraska (moving to Ohio)
673 posts, read 3,753,447 times
Reputation: 474

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I was just wondering for those in favor of a national sales tax or flat-tax what you set that rate at?

Also what would you do about those extremely popular deductions such at mortgage interest and property tax deductions? (I dont own a house, but arent both mortgage interest and property tax deductable).

Also, since all the very popular federal deductions would go away under a flat tax how do you think it would be possible for legislators to vote for a flat tax and abolish all the credits and deductions?

I just think the idea of flat taxes are ridiculous, I think the progressive income tax is the way to go at the federal level. Personally, it would be nice for the rich to pay around 40% at the federal level rather then the current 35%. Even 40% is very low by historical standards.

When Clinton raised the federal income tax on the rich the economy took off. I think it was brilliant for him to raise them just enough that they would increase federal revenue while not increasing them so much that they economic problems.
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Old 03-13-2007, 11:51 AM
 
7,378 posts, read 6,733,417 times
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The reason 40% is low historically is because when it was higher we realized that it was choking the economy. The lower the upper tax rate, the better the economy.

For now set the National Sales Tax at 22%, to be lowered later when spending is reduced.
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Old 03-13-2007, 06:04 PM
 
Location: Lincoln, Nebraska (moving to Ohio)
673 posts, read 3,753,447 times
Reputation: 474
National Sales Tax at 22% and a local/state sales tax at 8-10%?
that would be 30-32% for sales-tax on purchases after state and local taxes are figured in.
Hotels would be around 38% sales tax then if the 22% sales tax went into effect, wow I wonder how the hospitality industry would feel about that?

Do you think that decrease consumer consumption alot, just a little or increase it? How would it impact consumer spending?

Also do you think that there should be any exemptions to that?
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Old 03-13-2007, 06:17 PM
 
Location: N.H.
1,022 posts, read 3,199,839 times
Reputation: 454
3% and it should never rise. the gov should have to live within those limits. Inflation goes up about that every year. they say they need more money tell them price went up so the taxes must have gone up as well. Can't make it work than cut spending. (see liberals having hart attack now) Ahh refreshing. lol
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Old 03-13-2007, 06:34 PM
 
8,632 posts, read 9,173,978 times
Reputation: 2403
Quote:
Originally Posted by MattDen View Post
I was just wondering for those in favor of a national sales tax or flat-tax what you set that rate at?

Also what would you do about those extremely popular deductions such at mortgage interest and property tax deductions? (I dont own a house, but arent both mortgage interest and property tax deductable).

Also, since all the very popular federal deductions would go away under a flat tax how do you think it would be possible for legislators to vote for a flat tax and abolish all the credits and deductions?

I just think the idea of flat taxes are ridiculous, I think the progressive income tax is the way to go at the federal level. Personally, it would be nice for the rich to pay around 40% at the federal level rather then the current 35%. Even 40% is very low by historical standards.

When Clinton raised the federal income tax on the rich the economy took off. I think it was brilliant for him to raise them just enough that they would increase federal revenue while not increasing them so much that they economic problems.
You are dillusional! The Irony of it all. JFK, the man every democrat loves. The liberals icon , 1960 ran on a platform of lowering tax rates. His cheif economic adviser Walter Heller argued that lower rates would elimnate " fiscal drag" and stimulate the economy! The following Johnson administration, HELLO, LBJ, even recognized the "fiscal dividend" provided by lower rates, unfortunatly of course they used it to help them reach their collecivist goals of the "Great Society". The debate about lowering tax rates stimulating the economy was over 47 years ago. Time to come into the light!
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Old 03-13-2007, 09:17 PM
 
7,378 posts, read 6,733,417 times
Reputation: 1253
Quote:
Originally Posted by MattDen View Post
National Sales Tax at 22% and a local/state sales tax at 8-10%?
that would be 30-32% for sales-tax on purchases after state and local taxes are figured in.
Hotels would be around 38% sales tax then if the 22% sales tax went into effect, wow I wonder how the hospitality industry would feel about that?

Do you think that decrease consumer consumption alot, just a little or increase it? How would it impact consumer spending?

Also do you think that there should be any exemptions to that?
The amount I proposed is assuming all other federal taxes would be eliminated. Therefore, each former taxpayer would have more money in his/her pocket to pay the sales tax. This being relatively revenue neutral, the initial goal would be to increase investment, make the U.S. more attractive to business, and remove some of the bureaucracy.

BTW, those below a certain income level would receive a prebate to cover taxes on essentials. See the Fair Tax Plan.
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Old 03-14-2007, 07:32 AM
 
146 posts, read 537,612 times
Reputation: 180
Default A Definition of Flat Tax

Quote:
Originally Posted by MattDen View Post
I was just wondering for those in favor of a national sales tax or flat-tax what you set that rate at?

Russia's flat tax rate is 17%. They changed their tax system several years ago for economic reasons. We should change ours out of fairness first; economics is secondary. Most US economists suggest between 16%-21%.

Also, several posts on this thread are misrepresenting what the flat tax actually is so here's some info. It's from the Heriitage Foundation...yes, they're a conservative think-tank, doesn't mean they're wrong

A Brief Guide to the Flat Tax
by Daniel J. Mitchell, Ph.D.

There is widespread consensus that the current tax system is a complicated failure that hinders the nation’s growth while allowing the politically well-connected to manipulate the system to get special breaks that are not available to average workers and businesses. This is stimulating a great deal of interest in shifting to a sim*ple and fair flat tax. For instance, President George W. Bush has appointed the President’s Advisory Panel on Tax Reform to recommend options for fundamental tax reform,[1] the Department of the Treasury has produced extensive analysis of the flat tax and other reform options,[2] and lawmakers on Capitol Hill are exploring various ways to reform the tax code.

The United States should move quickly to reform its tax system. In a competitive global economy, jobs and capital flow to jurisdictions with better tax law. Tradi*tionally, this process of “tax competition” has benefited the United States, but there is growing evidence that America is falling behind. Nations around the world are lowering tax rates and reforming their tax systems. Indeed, nine countries that were part of the former Soviet Bloc have adopted versions of the flat tax.[3] These pro-growth reforms are yielding impressive results and are a road map for U.S. policymakers.

What Is a Flat Tax?

Unlike the current system, a flat tax is simple, fair, and good for growth. Instead of the 893 forms required by the current system,[4] a flat tax would use only two postcard-sized forms: one for labor income and the other for business and capital income. Unlike the current system, which discriminates based on the source, use, and level of income, a flat tax treats all taxpayers equally, fulfilling the “equal justice under law” principle etched above the main entrance to the U.S. Supreme Court building. And unlike the current system, which punishes people for contributing to the nation’s wealth, a flat tax would lower marginal tax rates and eliminate the tax bias against saving and investment, thus ensuring better economic performance in a competitive global economy
".
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Old 03-14-2007, 08:42 AM
 
7,378 posts, read 6,733,417 times
Reputation: 1253
The Flat Tax certainly is better than the current tax structure. However, to encourage investment and growth in the economy, the Fair Tax (more or less a national sales tax) should be implemented. This makes paying taxes discretionary and makes the U.S. more appealing for manufacturing jobs.
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Old 03-14-2007, 08:58 AM
 
146 posts, read 537,612 times
Reputation: 180
Default Fairness

Quote:
Originally Posted by Amaznjohn View Post
The Flat Tax certainly is better than the current tax structure. However, to encourage investment and growth in the economy, the Fair Tax (more or less a national sales tax) should be implemented. This makes paying taxes discretionary and makes the U.S. more appealing for manufacturing jobs.

I'm more concerned about fairness and why some citizens are being forced to give a bigger portion of their earnings to the government. Reeks of socialism and rent-seeking policies.
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Old 03-14-2007, 09:03 AM
 
Location: Springfield, Missouri
2,814 posts, read 12,077,372 times
Reputation: 2000001303
I'd love a flat tax. Make it 10% across the board and for states make it 5% across the board for those that have income tax. For sales tax, make it 5% across the board. If you go too high, commerce slows.
Everyone should pay taxes, poor or rich, but the only way it would work is if all deductions were eliminated and the system was streamlined and simple. No more loopholes for the rich or corporations. We'd have our budget under control in a couple of years.
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