Thursday, December 09, 2010

Flat Or Fair Tax?

There is a debate between proponents of the Flat Tax and the Fair Tax.

The Flat Tax is a good idea and is better than the current system. But I think it is only the second best tax system we could have:

Under the Fair Tax, everyone will pay voluntarily when they buy goods and services. When the rich man buys his yacht, he'll pay it. No loopholes. When the illegal immigrant buys his beer, boom box, car, whatever, he will pay it. No dodging because his income goes unreported.


Chuck said...

I have always been a flat tax proponent but I like this idea.

We could even exempt food (not pop, chips, beer, etc), heating fuel, and other true essentials to give the working poor a bit of a break. I do feel that people that are working and trying to support a family on say, minimum wage, would have a hard time with being taxed on the basics. But, no earned income credit, no loopholes for corporate payers. If they buy a good, tax it.

LASunsett said...

If we consider that about 25% of a budget goes toward CPAs and attorneys to keep the company in compliance with the tax code, we see that most of them could be fired and prices dropped to almost account for the extra sales tax. It's essentially a wash.

But when we throw in the fact that we get to keep our federal withholdings, it sounds like a sweeter deal.

We ca all face it. It is not going to be easy to get politicians to give up the power they exercise, to manipulate whatever behavior they want. We want you to do this...and if you do, we'll give you a tax break. Or, if you do that, we will tax you stop it now. They like that too much.