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View Poll Results: Which do you prefer?
Flat income tax. All income is taxed equally. 29 58.00%
Progressive income tax. Higher incomes are taxed more than lower incomes. 14 28.00%
Not sure 7 14.00%
Voters: 50. You may not vote on this poll

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Old 06-29-2011, 09:55 AM
 
Location: London, U.K.
3,006 posts, read 3,868,888 times
Reputation: 1750

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The problem is that the rich spend less of their income meaning they pay less tax overall (due to sales tax). Also tax avoidance is rampant amongst the wealthy so this would mean they end up paying less tax than the poor. I've a friend whos the son of a Baron- he's chuffed because last year his income tax bill amounted to 3% of his earnings.
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Old 06-29-2011, 09:58 AM
 
Location: London, U.K.
3,006 posts, read 3,868,888 times
Reputation: 1750
Quote:
Originally Posted by InformedConsent View Post
Total BS. Look at the total effective federal tax rates by income level (latest available data from the CBO):

Top 1%: 31.2%
Top 5%: 29.0%
Top 10%: 27.5%
Top 20%: 25.8%
Next 20%: 17.6%
Next 20%: 14.2%
Next 20%: 10.2%
Bottom 20%: 4.3%

Includes: income, social insurance (payroll), and excise taxes

http://www.cbo.gov/publications/collections/tax/2009/effective_rates.pdf (broken link)
The top 2% avoid most of that though.
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Old 06-29-2011, 10:00 AM
 
Location: the very edge of the continent
88,964 posts, read 44,771,250 times
Reputation: 13677
Quote:
Originally Posted by archineer View Post
tax avoidance is rampant among the wealthy
Hmmm... another poster who needs to look at the actual data on effective tax rates...
Quote:
Originally Posted by InformedConsent View Post
Total BS. Look at the total effective federal tax rates by income level (latest available data from the CBO):

Top 1%: 31.2%
Top 5%: 29.0%
Top 10%: 27.5%
Top 20%: 25.8%
Next 20%: 17.6%
Next 20%: 14.2%
Next 20%: 10.2%
Bottom 20%: 4.3%

Includes: income, social insurance (payroll), and excise taxes

http://www.cbo.gov/publications/collections/tax/2009/effective_rates.pdf
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Old 06-29-2011, 10:02 AM
 
Location: the very edge of the continent
88,964 posts, read 44,771,250 times
Reputation: 13677
Quote:
Originally Posted by archineer View Post
The top 2% avoid most of that though.
Um... how is it that they are 'avoiding it' when that rate is what they actually paid according to the CBO?
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Old 06-29-2011, 10:13 AM
 
Location: PA
5,562 posts, read 5,680,354 times
Reputation: 1962
I suggest we dont tax incomes at all frankly its our money, no tax on tips, incomes, labor of any kind this concept of a income tax is bad for economic liberty and has never been FAIR!!
Reduce the size of government by 50%.
Leave the Social Security TAX and Medicare tax to support those still dependent but give younger people the option to OPT OUT!!! Because SS is and will be broke when younger people retire and government can not be trusted to keep their generations money SAFE!!

3% FEDERAL SALES TAX ON ALL GOODS REPLACES THE INCOME TAX. That is RIGHT 3%!!!! With all the spending we do this creates a better system of revenue for the government. It also is easier to track sales and purchases then it would be deal with the loop holes and nonsense of the IRS and benefits given to those who use the system. Your money is your money no more asking for cash back and other benefits from the government in the forms of "tax breaks and or refunds" to justify your exisitence.

Everyone pays the rich the poor and middle class have to buy something its low enough to keep the government running and not destory any peoples lives.
These numbers of 17% etc and so on are to support overly large government spending habits and shouldnt allowed to continue and over time they will just keep raising the numbers to support the corrupt people in washingon. 3% should be written into the constitution and never be changed or adjusted with out changing the constitution and replace the 16th amendment.

FOOD is tax exempt!
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Old 06-29-2011, 10:53 AM
 
Location: Houston, Tx
3,644 posts, read 6,302,342 times
Reputation: 1633
Quote:
Originally Posted by Winter_Sucks View Post
Because a waitress and Bill Gates shouldn't get taxed at the same rate.
Why not? You do understand what a percentage means, right? No one is saying they pay the same amount of dollars in taxes. They pay the same percentage. The rich will still pay far more than the poor under a flat tax but they will pay the same percentage.
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Old 06-29-2011, 10:59 AM
 
Location: Londonderry, NH
41,479 posts, read 59,752,379 times
Reputation: 24862
The top 10% should pay all the federal inconme tax because they own the place. They can pay to maintain it.
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Old 06-29-2011, 11:01 AM
 
Location: Sierra Vista, AZ
17,531 posts, read 24,685,656 times
Reputation: 9980
How about a flat wage tax with no cap at $106,000

Sounds fair to me
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Old 06-30-2011, 09:14 AM
 
Location: London, U.K.
3,006 posts, read 3,868,888 times
Reputation: 1750
Quote:
Originally Posted by InformedConsent View Post
Hmmm... another poster who needs to look at the actual data on effective tax rates...
But the very wealthy do not pay the actual rates. They declare their income as capial gains and numerous other avoidance schemes, like moving to monaco for 6 months of the year.
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Old 06-30-2011, 09:32 AM
 
Location: Dallas, TX
31,767 posts, read 28,804,560 times
Reputation: 12341
Quote:
Originally Posted by AnUnidentifiedMale View Post
If you're worried about tax rates on the poor, then you could exempt the first $15,000 from being taxed, and then have a flat tax rate on all income above that amount.
And that is exactly how the need for progression is realized, the process begins. Understanding that flat income tax would hurt the poor guarantees that the effect will be gradual with income. So I cut the chase, and support progressive taxation.
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