Quote:
Originally Posted by Riot
Like all flat tax proposals, it sounds good. But now you have to figure out how much money that will bring in, and compare it to our current income level.
I've seen estimates that a flat tax would have to be at a rate of 23-25% to replace our current income. Rick Perry wanted 20%, and his budget busted immediately as there wasn't enough income to pay for what we need.
We can't figure income first or separately from our expenditures. We have certain fixed expenses as a country. We have to pay those. We use taxes to pay our group expenses. Bush gave massive tax cuts (cut our income markedly) without cutting spending, then added on unfunded wars on top of that. That's why we have a massive deficit. Obama worsened it by not allowing Bush tax cuts to expire. They must. Bush gave away our income, and we need it back. Especially as he added those unfunded wars on top of what he suddenly stopped paying for.
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I obviously haven't seen the numbers so I don't know how much a national sales tax would bring in. I know that a 5% national sales tax would not be enough to eliminate income tax but I think it would be enough to lower income taxes substantially.
How much do you think someone should pay in federal income tax if they make over $1 million a year? I think 30% is reasonable.