There are problems with that too. No system is perfect and someone will always bitch. Not a big fan of uncle sam stealing my income but i wouldn't feel as bad knowing that i do not get "extra" punished for being successful while someone else decided to drop out of school and work at McD's while accepting food stamps the rest of their life.

Sales taxes are flat. Why can't income taxes. The upper , professional, and lower-middle classes should not be punished by earning progressively more. Much like anyone going into Macy's should not have to pay a higher sales tax % for purchasing a higher dollar value of merchandise then someone going to Walmart.

12/4/2007 3:52:44 PM

dur,

i have never heard a valid economically sound argument for graduated taxes, it is grossly unfair.

12/4/2007 3:57:27 PM

hur, I agree if you are going to tax income a flat tax is fairer. But why tax income? It seems counter productive. The purpose of taxing cigs is to deter smoking, but somehow to they dont relate those same principles to income. typical.

12/4/2007 4:01:24 PM

so a hiked up sales tax i.e 18-20% as i have seen proposed upon elimination of the income tax would discourage buying of non-essential items and luxury goods. Maybe I'll look into this more but I have also heard arguments against this relating to an explosion of the black market. Yeah no one will drive to Canada to buy the super pack of toilet paper but when it comes to luxury goods and non-essential items as mentioned above. This can already be witnessed in the US in the smuggling of cigarette cartons across state borders to avoid higher taxes in other states. My buddy for example always brings a few cartons of smokes when he goes back to Alaska for his uncle b.c a pack of marlboro lights is like $5 up there. While this is not illegal; it would be if he took a truck load up there to sell to the locals for say $4/pack. Making him like $0.50 a pack (Marlboro lights are like $3.50 in NC??) and this is still $1 lower then the price in AK

I've always heard the best way to tax is through a broad range of activities (not counting excise taxes) like estate, capital gains, income, sales, car tax, etc

12/4/2007 4:42:47 PM

^well most of the luxury items, cars, houses, boats, all have to be registered and taxed at that time.

The fact is people will have more money and todays american can stand having more money, so they will simply piss away more. sadly enough.

The thought is to do away with all other taxes except a sales tax. That way the cost of goods doing increase as much or at all.

I actually think you will have an economic boom if it were to happen.

12/4/2007 6:30:06 PM

Wouldn't this promote inflation

12/4/2007 7:31:08 PM

Just a sales tax; could also be seen as a Regressive tax also which I find more unfair then the current progressive sales tax structure. If hypothetically implemented I would support a standard deduction for food and other necessities not just limited to the poor.

Lets say income tax is abolished and their is only a 20% national sales tax.
If I on a 75K income purchase the same BMW 330ci for $35000 as someone earning 200K. With no more income tax and hypothetically no more consumer purchases btw the two of us I will be taxed at a rate of 46.6% while the other guys is taxed at 17.5%.

Although a flat income tax in my mind is ideal; it is important to not that currently even though progressive the tax rates for the upper echelons is at nearly the lowest point since an income tax was permanently implemented. During the Regan Admin the highest tax bracket was at a prohibitive 70%.

http://en.wikipedia.org/wiki/Income_tax_in_the_United_States

Quote :

"During the Great Depression and World War II, the top income tax rate rose again. In the Internal Revenue Code of 1939, the top rate was 75%. The top rate reached 94% during the war and remained at 91% until 1964."

Absolutely ridiculous. If I was taxed at 94% I would throw in the towel to my job and collect welfare like the rest of the lazy people not working in america.

[Edited on December 4, 2007 at 8:49 PM. Reason : l]

12/4/2007 8:41:01 PM