Flat Tax

Discussion in 'Politics Discussion' started by Rhoda D'Ettore, Oct 31, 2014.

  1. downloads

    downloads Well-Known Member

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    Flat taxes hurt the poorer income brackets more than anything else. That's why it is a progressive taxation system. Those in the lower income brackets are much more sensitive to income changes when it comes to purchasing necessary goods and services. As a household brings in more income they are increasingly less price sensitive and will be able to make their dollars go further, so they can be taxed more.

    Deductions help encourage growth and improve infrastructure as well. For example, if you install solar panels in your home you get a deduction. If you buy an electric vehicle you get a federal tax credit. I think these things should be encouraged. And because there is an initial cost to do these things and they are somewhat nontraditional there needs to be an incentive or else it would not take off in the general public. And you also need to encourage people to invest, to have a 401(k), to have a health savings account, and a retirement plan. These things aren't taxed (to a degree) or else no one would put their money into them. There needs to be an incentive to encourage growth and tax credits is how it happens.
     
  2. turt

    turt Guest

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    I'd rather them tax imports than charge income tax. But that's already impossible due to the agreements the country has made. I'm pretty sure a 20% tax on all imports would move a signification number of jobs back here to the US and give Americans more money to spend on top of that.

    Also remember that you don't have to pay social security or medicare taxes once you start making six figures. A flat tax would take more money out of the middle class and poor due to this.
     
  3. JR Ewing

    JR Ewing Super Moderator Staff Member

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    You do still have to pay social security & medicare on at least some of your money if you make 6 figures - it's just that they're not taken out from dollars above the low six figure limit.

    As for tax credits for things like solar panels and electric cars, I'm all for taking advantage of tax credits. But these things are subject to govt abuse and cronyism, unfortunately. The current admin would never give credits for products related to fossil fuels, which are generally cheaper and more reliable to use and own.
     
  4. jdroc

    jdroc Guest

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    Yes hurry up and do a flat tax. But it will take away too many jobs for Gov't, and make thing too easier for citizens.........Two things are government is not willing to do.
     
  5. wulfman

    wulfman Guest

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    Completely agree about the IRS being corrupt JR. My brother has recently become an accountant at a firm in Boston and has made me aware to a lot of stuff the IRS does and can do at whim that is just despicable.
     
  6. gmckee1985

    gmckee1985 Senior Investor

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    I think all tax credits should be eliminated. We've got to stop trying to social engineer by using the tax code to encourage outcomes the government deems desirable. Need to get back to free market principles. A flat tax would be a step in that direction. We have to gut all the corporate and personal welfare going on as well. Then we will thrive again as a nation.
     
  7. Determined2014

    Determined2014 Guest

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    That would definitly be a better solution , that way everyone gets to pay the same percentage and all those big comanies that tend to get away with not paying taxes will now have to pay whether they like it or not.
     

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