The Flat Tax

[ThePokerAddict]

Official 1994 Freedom and Restoration Act Proposal for a Flat Tax in the United States:

The Pro’s to the Flat Tax

- Lowering of tax evasion… it’s pretty obvious corporations in the U.S. and many people paying taxes evade high tax rates by any means. For example, if the top rate is 50%, you pay 50 cents on every dollar. If it’s only 13%, you only save 13 cents, greatly eliminating the risk for evaders
- More stable revenues. A progressive tax system provides rollercoaster revenues for the government. When times are bad, revenues fall. When they are good, they rise. A flat tax stabilizes this. Even when taxes have been raised, under Carter and Bush Sr. to try and bring down the budget deficit, it skyrocketed (only the Democratic congress pumped up spending during the Reagan years that he wanted to cut)
- The current tax system penalizes work (social security taxes, sales taxes, Medicaid/Care, progressive tax on higher incomes (redistribution of wealth), penalizes saving, investing, and entrepreneurship
- Simply the flat tax creates less tax evasion, increased incentives to work, save, and invest

Proposed in U.S. Congress:

- No family of four earning less then $33,299 would pay taxes at all, over this, they would pay 17% of there income to the government
- All you would fill out is a postcard sized form… no deductions, no loopholes, no special tax breaks, no schedules – just a straight uncomplicated tax
- You would get rid of 480 different tax forms in the U.S. – as well as the 280 forms that explain to you how to fill out the 480 forms
- Savings of $232 Billion in man hours (5.4 billion work hours – the same amount of work hours to produce every van, truck and car in the U.S. in 1994)
- $900 saving for every man, woman, and child in America
- The tax is pro-growth… and it’s fair. Everyone is treated the same!!
- Why are savings rates so low? We tax when someone earns a dollar and then again when it produces a return (investing)
- The flat tax wipes out this perverse bias against saving; savings will rise, the nation’s pool of capital will grow, workers will be better equipped and trained, and output will expand, leading to bigger paychecks
- Elimination of capital gains and dividend taxes for investors
- If you also are an adult or married couple supporting children, there is a family allowance, that exempts you from paying a single penny up to the median wage level
- Capital helps us all. It keeps interest rates low, and that's good for homebuyers, students, and workers
- This applies for all business as well: Simply fill out a postcard, and your done
- This would also start a skyrocketing in hiring. Tax relief makes employees more valuable to businesses. This makes it profitable to hire more workers, most notably lower-skilled workers, in manufacturing and blue collared work in particular. Many people also choose not to work because the direct costs of working exceed the benefits. Tax reform would alter that tradeoff by reducing the tax penalty on employment

I'm just going to paste my notes I jotted down from the summary of the bill proposal. I am a Republican, and I would love to see a flat tax be introduced. It would enter us into a new era of prosperity.

Think about it, no more tax loopholes. Everyone keeps more of there money. The corporations and more wealthier people would actually begin to pay taxes again instead of hiring accountants to take advantage of offshoring loopholes. No more outsourcing of American jobs without companies truly paying the price for it either...

Revenues would rise from the flat tax overall steadily, and create more capital. No longer would there be punishment to take your hard earned money and re-invest it. Poor people in fact, wouldn't even pay one cent of tax under the average income. Families would receive allowances.

I hope the progressive tax system is yesteryear in this country. I'm sick and tired of having the tax system tied to economic growth. History has shown when taxes are cut, the economy booms, and when they are raised -- we never meet the projected revenues expected by raising percentages.

Wouldn't it be nice if corporations and high income citizens funneled there tax dollars back into the country that made them or would you rather have them shovel it off into the Cayman Islands?

Discuss please... and please, let's hope a Flat Tax is passed into law while the Republicans have the majority!