Income tax identity theft baffles IRS

[ETcallhome]

Not only that, but a flat tax is a terrible idea! There are myriad ways to greatly simplify the tax code or to completely overhaul it. But there is no worse idea than a flat tax. There are good proposals out there. In the meantime we need to put progressiveness and more brackets back into the U.S. income tax structure. Sanders is correct about that.

This: https://fairtax.org/about/how-fairtax-works is an interesting idea, but it incorporates no mechanism to prevent the distortion in wealth distribution from continuing to compound. It will result in worsening the distortion over time. That will lead to social unrest and a stagnating economy. Currently too little capital is remaining with the lower economic classes. Any tax proposal that does not address this problem, but instead makes it worse, will lead to trouble.

perhaps, but at some point we need to teach people that you can't be rich, or even middle class if you are poor.

 

[piezoe]

Your point is well taken. As we know, something given to us is often not appreciated to the extent it should be. This should not be lost on governments. Handouts are only appropriate in dire and unusual circumstances. But we must have tax policies that leave incentives to work hard and play by the rules. Without opportunity, hope is lost. We must make sure that a reasonable amount of capital is left in the lower economic strata. We aren't doing so well in this regard. Some changes are needed.