Flat Tax, everyone is talking about it, its going to be wonderful sooooooo
simple, no more IRS. Ball Sh*t, do these people live in the real world. Lets all just rush into something without thinking about it lol.
Like VAT it all seemed very simple 17.5%. Then came the pressure groups, what about this, what about that, soon there was Zero rated tax items, exempt items, Grey areas of law that no one really knew what it meant was open to interpretation, until a court case.
What about fraud? People think that those that have to pass the tax won't try to play the system either via tax fraud or tax avoidance. I Think, from what I last saw, if everyone in the UK paid there VAT on time and did not fiddle, VAT could be as low as 10%.
Maybe folks are happy for it to happen here, because if the model for here is the same as the UK, 90% of tax revenue would come from the top 10% companies. And again they talk about a national flat tax ok, but what about state sales tax, people going to be happy with a 45% (eg) state and national tax??
what do you think about this tax change??
Flat Tax, everyone is talking about it, its going to be wonderful sooooooo
simple, no more IRS. Ball Sh*t, do these people live in the real world. Lets all just rush into something without thinking about it lol.
And again they talk about a national flat tax ok, but what about state sales tax, people going to be happy with a 45% (eg) state and national tax??
what do you think about this tax change??
Where are you getting these numbers from? 45% state & national tax :o
I have heard this flat tax bandied about around election times but is there really a serious attempt to pass it into law?
-? Yep is a serious thing they are looking at. The claim being that it will be a consumption tax. You only pay on what you buy and therefore no need for the IRS. I have heard various figures banded about, truth be known, no one really knows where it would be set as its going to have to replace the current tax system, so add the governement tax on top of state tax, its not going to be cheap. State sales tax in Texas is 8.25%, so I guess it would be that plus on whatever the Government wanted to add. I have heard it as high as 35% and low as 20%. No matter which one it is its going to be bloody high.
Now bear in mind in the UK you pay not tax on most food items, childrens cloths and books etc. I very much doubt that luxury will not be afforded to us.
Seems like the poor would pay more and the rich less than today. Even though rich people would tend to buy more stuff, their total tax paymentt would still be less than they pay today. Meanwhile, some people at the bottom end don't pay income tax (only current sales tax) and their tax burden would increase as a proportion of their incomr. Seems like taxing the poor to me.
But it would stop waste. We waste an awful lot in this society. From sitting with car engines on just because people feel like it, to buying excess food then throwing it out because it hasn't been eaten.
If this tax was different depending on the product (fresh fruit and vegetables being not taxed, basic clothing items being on a low band, luxury items being the very highest tax rating etc) then it would help those on a lower income to eat better and those on a higher income to think before they wasted.
Never works the way you want it to, though.
We went through this flat tax stuff fairly recently
http//www.british-expats.com/phpBB/viewtopic.php?t=16942&highlight=flat
I understand some US states have no State Income Tax and charge a bot more for their Sales Tax. I think Tennessee is one such state? Might be wrong. I think I heard they pay 9% instead of 6%. But when you compare what you pay in state tax to federal tax, that extra 3% could easily turn into 15-30% extra when applied nationally!
Of course the main problem with this system is that people with low income will pay the same 30% more for their new TV as a CEO of a corporation. Of course the CEO earns more and will buy more stuff, but seriously, does a CEO really spend that much on non-food? Last year I earnt in the $30-40k bracket. I paid about $3k in income tax. Assuming a 30% federal sales tax, I can't imagine I would have bought $10k worth of non-food stuff. If my middle class salary wasn't enough, just who *is* going to pick up the bill?
I just hate taxes.. LOL... and to be totally honest don't really understand them.. I confuse easily )
BUT, I do know that 3 years ago when hubby earned $72k we were a lot better off tax wise than this time around when he earned $123k .. !!!
How the heck did that happen?
BUT, I do know that 3 years ago when hubby earned $72k we were a lot better off tax wise than this time around when he earned $123k .. !!!
have more babies. We worked out if we had one more, they'd owe us! :lol:
...who says there's no welfare state in the US?..... lol
So what are you calling #4?
Morrigan Diana Tamagotchi Kwan-Yi Tax-Dodge?