blu
Lv 7
blu asked in Politics & GovernmentPolitics · 7 years ago

If there were no tax breaks, subsidies, exemptions and all entities paid a flat rate of income tax?

... what percent of flat tax rate do you think would be equal to the amount of income tax contribution we have now? Also, exclude the impoverished as they contribute little in income tax as it is.

Update:

ing- If you want to tax the impoverished ... then submit a number including that (as if it's going to make much difference).

Update 2:

... or submit a number that reflects both (w/ and w/o the impoverished contribution)

Update 3:

Folks- The focus of my q is intended to concentrate on how the flat tax structure would reflect no more billions in subsidies to big oil ... no more tax exemptions for ANYONE. Imagine the increased revenue f/ the current tax exempt entities. That has to be millions/billions.

Is there anyone out there able to address this q at face value?

What if churches were required to pay the same rate of flat income tax? Are you understanding my inquiry?

Update 4:

If we started taxing all the income that currently is not taxed ... that will lower the amount the rest of us pay as I presented an equation to equal what the current income tax contribution is.

10 Answers

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  • 7 years ago
    Favorite Answer

    you know, you can have a progressive flat tax

    where different income groups pay a different flat tax

    and still have ni subsides, no exemptions, etc

    2. the IRS has the data on the actual tax rate that most people in different income groups currently pay

    3. so they could easily come up with a new tax system that could generate the same income

    and be a card sized income tax form that takes 5 mins to fill out

    4. just think of the economic benefit has people would no longer have to pay someone to do their income tax's and the time saved

    5. but that will never happen, because a major source of campaign contributions are from those people, organizations or companies, trying to get their own special tax break

  • Anonymous
    7 years ago

    it would have to be a plateau tax rate to exclude a group. To pay for what we spend each year...40% or more considering the diminishing returns of raising taxes versus total dollars received by the government.

    If you want to save the poor of this country taxes you would eliminate the corporate tax and the income tax through repeal of the 16fh amendment and then add a sales tax of 15 to 20% on all primary market purchases.

  • Brian
    Lv 7
    7 years ago

    Actually the impoverished, which needs to be defined, not only contribute nothing in Federal income taxes, they actually pay a negative real tax. That is that the tax code pays them rather than charging them. I have always been curious about how much could be saved if we simply stopped using the tax code as welfare.

  • 7 years ago

    Flat rates don't work. They're effectively a de facto regressive tax on the poor. You can't merely exclude the poor. You're only measuring in terms of actual dollars. What you're not considering is that taxes are a *percentage* of income. That very much affects the poor in a harsher way than it does anyone else.

    A millionaire paying 25% flat still has $750,000 to live on. Someone making $15,000 would only have $11,250 left to live on - the flat rate affects the poor MUCH more harshly in terms of ability to self-sustain.

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  • 7 years ago

    No breaks. The low income people are getting benefits. Why shouldn't they pay? Way back when - when I made $75/month and found out I owed no taxes .. I asked why? Why should it be free for me? I still believe that.

  • Noah
    Lv 6
    7 years ago

    Without a wealth tax involved wealth and more to the point wealth producing assets would accumulate in the hands of fewer and fewer families. By the third generation as now we already see 500 families with more wealth than most of the rest of the country....by the 6th generation we'd have royalty and aristocracy of wealth....not good.

  • 7 years ago

    in 2008, before the crash, the average tax rate for returns with a positive liability was 12.24 percent

    http://taxfoundation.org/article/summary-latest-fe...

  • 7 years ago

    How can you exclude the poor in a flat tax system?

  • cosmo
    Lv 7
    7 years ago

    The federal government is about 23% of GDP, so there you are.

    And by the way, that percentage is currently less than it was during the Reagan Administration.

  • 7 years ago

    Then YOU would end up paying even more taxes and the wealthy would pay far less.

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