Today is tax day ... hope you were able to make Uncle Sam happy ...
Or, to those receiving a refund ... I hope you receive the most from Uncle Sam.
We should have a flat tax with a simple postcard that looks like this:
You would receive two postcards in the mail: 1) with instructions and 2) with the form above.
This system is certainly fair to lower income and middle income Americans. Anyone making below $36,000 ($48,000 if married) after deductions would receive 17.7% of the taxes they contributed in their paychecks back as a refund.
In other words: for every $100 paid in to taxes through payroll - you would receive $17.70 as a refund.
For the wealthy, this would be a rather dramatic INCREASE in the amount of taxes paid as most of wealthy currently pay less (after deductions percentage wise) than the average middle class American. The amount (17.7%) is small enough for the taxation not to be prohibitive to their business and investment and encourages grants and charitable action not motivated by tax evasion.
This system treats Americans fairly and pleads to the American public to be fair through it's simplicity.
Here are a few comments I have responded to in the Macrumors forums:
Originally posted by iGary
The flat tax is a joke.
A federal sales tax would be much more useful. Taxes people on whet they spend, not what they earn, and it catches EVERYONE.
Don't clump yourself with me and call yourself a conservative. I know tons of conservatives who think its a stoopid idea.
A sales tax would have to be enormous and would have to be on top of state sales tax. The current estimate is that it would have to be around 18-23% + state sales tax.
That would be incredibly regressive on the lower income.
A sales tax is also not protestable by the individual. It would take a revolt on the scale of the civil war to overturn it if it became oppressive (which it would be from the beginning)
A flat tax is controlled by the individual if you go by Forbes plan which is fair in every aspect. See the postcard I posted previously.
A flat tax is exactly what true conservatives and true democrats want - it taxes the wealthy, doesn't tax the low and middle income Americans, yet collects the same or possibly more than the current tax system. It would also reduce the size of the IRS, reduce the complication of taxes on the wealthy, and encourage charity for charity sake, not for tax evasion purposes.
Originally Posted by jayb2000
A flat tax or sales tax are both inherently regressive.
Everyone spends money on food, shelter, clothing, but the poorer you are, the larger the portion of your income goes to that. Ditto for a flat tax, if everyone paid $5000 or $2500 or whatever, then again, a larger percentage of a poorer person's income would be taxes.
The flat tax involves nothing like you mention ...
You don't pay this percent if you make below $36,000 if single and $48,000 if married, you still get home, child and charity deductions up to $4,000 each. Then you are taxed 17% on the income above the $36,000.
It would be a simple postcard and people would save MILLIONS every year because there would be no tax prep costs or software to buy!