Abolish the Income Tax: Steve Forbes and Peter Schiff
- Thread starter achilles28
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I think consumption tax leads to http://en.wikipedia.org/wiki/Crony_capitalism
Wrong. They only pay a 35% tax on amounts currently above $373,651. Untill they hit that level, they pay tiered rates. A family above would pay $101,086 total tax (before any deductions) for an effective tax rate of 27%.
http://www.moneychimp.com/features/tax_brackets.htm
Shiff's argument for a "consumption tax" based economy is excellent and is exactly what we need to stimulate our economy and job creation.
Anyone who can't see that should move to Venezuela.
Anyone who can't see that should move to Venezuela.
Even with a flat income tax (fair tax policy) the rich would still pay much more. The most heinous aspect of our tax system is it's "progressivity". The more money you earn, the higher your tax rate.
We have "anti-discrimination" laws against all kinds of things... race, religion, gender, sexual orientation.. even weight. But our government discriminates on income.
Why is it so?
(1) Easy sell to the hoi polloi
(2) Power. The high earners have little if any voice in government... we just get to pay for it all. People who pay little or no Federal income tax, are quick to support greater confiscation of wealth and greater power by the government... just what the politicos want.
137 million tax payers with an average income of 24K.
If everyone was taxed at 30% = $1 Trillion.
Corporations like Exxon earned $35 billion + tax credits and pay zero. The solution is not to tax people based on income or consumption. Tax the entities that create transactions.
Very few people conduct business under their own name.
Very few people employ people. People create fictitious entities designed to limit liability. These entities is where all the action is and are licensed, registered and regulated by each state. There are over 300 million FEINs issued.
If each and every one of these artificial entities were taxed 30% on income and taxed on all transactions no tax would be required to be collected or paid by any individual real person and we would have a surplus.
If everyone was taxed at 30% = $1 Trillion.
Corporations like Exxon earned $35 billion + tax credits and pay zero. The solution is not to tax people based on income or consumption. Tax the entities that create transactions.
Very few people conduct business under their own name.
Very few people employ people. People create fictitious entities designed to limit liability. These entities is where all the action is and are licensed, registered and regulated by each state. There are over 300 million FEINs issued.
If each and every one of these artificial entities were taxed 30% on income and taxed on all transactions no tax would be required to be collected or paid by any individual real person and we would have a surplus.
When over 50% of your income goes to government, aren't you "working FOR THE GOVERNMENT"? (And without any of the benefits.. health insurance, pension... I might add.)