Flat tax - for or against?

[Moddy]

Kinda curious as to FLG's thoughts on a flat tax vs. our current income tax. Personally, I think that we should do away w/ the state and federal tax plans, and utilize a flat tax. I also believe that sales tax is a waste. Maybe do away w/ the state/fed tax and go with a straight 50% sales tax so that EVERYONE has to pay - the rich - the drug dealers - the hookers - everyone.

[Boss99]

50% seems a bit high for me. To think that'd have to pay 45 bucks for the box of diapers that i'd normally pay 30 for or 75 bucks to fill up my van just seems too unreasonable to me.

I'd like to see some arguments for it, just so I can possibly see some positives.

[Vandalous]

50% seems a bit high for me. To think that'd have to pay 45 bucks for the box of diapers that i'd normally pay 30 for or 75 bucks to fill up my van just seems too unreasonable to me.

I'd like to see some arguments for it, just so I can possibly see some positives.

Yeah that would be high except that you'd get back all the bucks that are deducted from your paycheck for FICA and state tax, which would more than make up for the general price increase for everything.

[DeadLamb]

go with a straight 50% sales tax

high sales tax just stalls out an econ. Being their are whole areas that survive off disposable income purchases. ATV dealer? Jewelry store? Doomed..

a slight tax shift in the luxury tax rate a few years ago almost 100% killed the boat building industry in total.

Flat tax will not work in the usa. It works in the countries like Romania etc being those places are lower econ to start.. Germany is talking about doing a flat tax, at 25%.. That's also not going to fly over here..

the flat tax idea at it's core are still, IMO, some what unfair being the rate for a large area of the middle class and lower class is going to need to be higher to make up for the rich paying less.

never mind that many flat tax plans want to only tax income, not capital gains. A bulk of the very rich are rich due to holdings and not so much the work they do.

[Moddy]

50% was an arbitrary number, with regards to the sales tax. I wonder just how much more (if any) revenue it would generate. What other creative ways could there be to tax those who have "under the radar" income?

[DeadLamb]

What other creative ways could there be to tax those who have "under the radar" income?

I've heard the idea of a larger gas tax, a food tax but mostly sales tax boost are the main focus.

IMO the problem is not people being paid under the radar, or a flat tax or the tax rate, it's the gov spending WAY to much in the first place. Spend less, tax less.

I'm also a little peeved that California's econ makes up 1/6 the of the usa's tax income but we have to beg so hard to get are OWN money back from the feds to fix stuff with in the state.