06-17-2016, 04:49 PM
(06-17-2016, 04:36 PM)Aquapod770 Wrote: This is why I'm for a low flat tax rate with little to no deductions.
But that's actually regressive....if the rich currently pay in the neighborhood of 20% (because most of their income is capital gains), a flat rate at that level would be a significant increase to many middle income earners.
It might be workable, though, if you only make it on income over $50k (since many below that pay little to no federal income tax).
You could go a step further to offset or augment it with a VAT on luxury items (cars, Iphones, big screen tv's, etc). But I agree with many others that I don't want to see new revenue sources until the govt starts showing some fiscal prudence.
Personally I'd rather see elimination of the corporate tax (maybe save a penalty on excess liquid reserves), offset by elimination of capital gains. That would actually be revenue and personal investment neutral, yet favorable to corporate investment (because the average effective corporate rate @22% would be offset at the investor level going from 20% capital gain to about 39% ordinary income). That would be one heck of a start.
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