reply to post by macman
The economic arguments for reducing taxes to increase investment are sound, however they really don't matter once you reach a tax rate that is less
than the rest of the world. There is nothing wrong with a progressive system. What can you do with $1million that you can't do with $750,000?
What can you do with $10million, that you can't do with $6.5million?
However, a flat tax affects the poor greatly. The guy making $30,000 per year and paying 15% now only gets to keep $25,500. There is a lot you can
do with that extra $4,500. Buy a new car, go on a good vacation, and so on. That $4,500 gets spent over and over and over, and taxed by the states
from sales taxes to fund education among other programs. The guy making $1million doesn't spend that $250,000 that he paid in taxes in its entirety.
The one making $10million definitely doesn't spend the $3.5million that he was taxed. Not to mention the fact that pretty much everyone that is
against the progressive tax doesn't pay in those top brackets anyway.
Nothing wrong with a progressive tax, but when it starts attacking the middle class, there is something wrong with that. The system needs to be
simple, stable, and defend the middle class. A flat tax is an attack on every class and eases off the rich, which makes absolutely no sense. Even
George Washington didn't mind paying higher taxes than the rest of us. He funded the Continentals for the majority of the revolution! Imagine that,
our rich people volunteering to pay for our military without being taxed to do so! THAT WOULD BE A BEAUTIFUL WORLD!
I like GetReadyAlready's idea, with my tiny modification to a simple progressive tax. Eliminate capital gains taxes and pass a balanced budget
amendment and we are set!
Response to GetReadyAlready: Without loop holes, the most expensive team of lawyers in the world won't matter. With lower taxes than the rest of the
world, 35% as a top rate, then they aren't leaving since it's a bargain already. Now I refer to my above argument.
edit on 12-7-2011 by
memarf1 because: Replying to GetReadyAlready