Question
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Law & Courts
In a quest to find a fair and equitable solution to tax reform, this question is presented in hopes of generating a community dialogue on how best to address this issue. Please share how you feel this can best be addressed.
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Answered Yes
The cost of administering the existing system is huge. The beauracacy is huge. The fear instilled in the general public is huge. We need a HUGE change! I suggest the "FairTax" approach. Here's a quick summary of how it works:::::The FairTax (H.R.25/S.1025) is a bill in the United States Congress for changing tax laws to replace the Internal Revenue Service (IRS) and all federal income taxes (including Alternative Minimum Tax), payroll taxes (including Social Security and Medicare taxes), corporate taxes, capital gains taxes, gift taxes, and estate taxes with a national retail sales tax, to be levied once at the point of purchase on all new goods and services. The proposal also calls for a monthly payment to households of citizens and legal resident aliens (based on family size) as an advance rebate of tax on purchases up to the poverty level. The sales tax rate, as defined in the legislation, is 23% of the total register price (23¢ of every $1—calculated the same way as income taxes), which is comparable to a 30% traditional state sales tax (30¢ on top of every $1). Because the U.S. tax system has a hidden effect on prices, it is expected that moving to the FairTax would decrease production costs from the removal of business taxes and compliance costs, which is predicted to offset a portion of the FairTax effect on prices
The cost of administering the existing system is huge. The beauracacy is huge. The fear instilled in the general public is huge. We need a HUGE change! I suggest the "FairTax" approach. Here's a quick summary of how it works:::::The FairTax (H.R.25/S.1025) is a bill in the United States Congress for changing tax laws to replace the Internal Revenue Service (IRS) and all federal income taxes (including Alternative Minimum Tax), payroll taxes (including Social Security and Medicare taxes), corporate taxes, capital gains taxes, gift taxes, and estate taxes with a national retail sales tax, to be levied once at the point of purchase on all new goods and services. The proposal also calls for a monthly payment to households of citizens and legal resident aliens (based on family size) as an advance rebate of tax on purchases up to the poverty level. The sales tax rate, as defined in the legislation, is 23% of the total register price (23¢ of every $1—calculated the same way as income taxes), which is comparable to a 30% traditional state sales tax (30¢ on top of every $1). Because the U.S. tax system has a hidden effect on prices, it is expected that moving to the FairTax would decrease production costs from the removal of business taxes and compliance costs, which is predicted to offset a portion of the FairTax effect on prices
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Huckabee comments on this and Ron Paul would support it! The problem is the system is too simple and takes authority away from Politicians and their Lobby supporters. I hope I live long enough to see this type of "change"! But the Republicans won't be back in power for probably 8 to 12 years!
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I am hoping, as I mentioned above, that we can steer clear of Republican vs. Democrats in this discussion as this is an issue that is pretty much a hair ball for everyone.~:-)
I don't believe to date either party has delivered on this issue so it's seems best to take it out of the politicians hands and return the finding of the solution to the citizenry in the shorter term. .Just my view. -
Answered Yes
Read a good short book - Called the Fair Tax. Makes good sense and could be done. Dems hate it, some Repubs talk about it - worth a read. It would revolutionize taxes, and prices if adopted. Would stop all the class war fare and really help middle and lower income. First good idea I have seen in a long time -
Answered Yes
This country was formed around a ,"Tea Party" surrounding this very issue. Most folks I know are feeling excessively over taxed. To date the ,"Best" solution I have heard offered is the 10% flat tax. My question would be, should the flat tax idea be applied to just individuals or to corporations (all) as well? I would love to hear your ideas. -
It wasn't the taxation per se; it was taxation without representation.
The problem with a flat tax is that it has a greater affect on those with a smaller income. The family with an income of 50,000 will feel the 10% far more significantly than the family with an income of 500,000. -
Not so sure about that Ali. $5,000 on $50,000 vs $50,000 on $500,000. Seems to share the pain pretty equally.
It's the $2,000. on $20,000.00 where I think it really gets problamatic.Maybe a smaller bite for those folks? As it stands now tho, it appears the ,"Middle class" get's hit the hardest. If Exxon Mobile was paying 10% across the board (no loopholes) and you were to expand that expodentially through corporate America, how would we be looking then? Maybe 10% isn't the right figure. maybe it's graduated.
10-20K = 5.0%
20-30K = 5,5%
30-40K = 6.0%
40- 50K= . 6.5%
50- 90K= . 7.0%
90-150K= 7.5%
150-250K= 8.0%
250-500K= 8.5%
500K -1mil= 9.0%
1Mil. & Up = 10.0%
Now this may not be,"It" either but just jogging the discussions in hopes we can come up with something all sides would sign off on.(Duck, incoming~:-) ) -
I still feel that the 45K left to one family and the 450k left to another tells its own tale about the relative value of the 10% taken from each.
Re the gradation you propose, it would be interesting to know what real percentage of all income the IRS gathers now.
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Answered Yes
consumption tax only and keep it low!