Originally posted by SF_GoldG_01:
How can ANYONE propose taxes of any kind in these times? If there is anything we need to be doing is cutting taxes. WHY? So that people and business can have more money spend on goods and to hire people. The rich being the ones who pretty much own the business, need to be given more tax breaks so that they can grow their business, and generate more employment.
The problem we've had the last 4 or so years is that instead of people spending what they were getting in tax breaks, they were saving or otherwise hoarding their money. This is made even worse when the wealthy often have their money sent to off-shore bank account, so that they aren't even taxed at the full amount. Then there's those wealthy that don't even pay their taxes (and get away with it).
This is why a flat tax is such a better idea. Basically, you consolidate all of the taxes into sales tax. So, instead of having taxes taken out of your paycheck and paying 6%-10% sales tax, you keep your entire earning and pay 25%-28% sales tax. This is a far better solution, in my opinion. Not only do you remove the political selling point, but it forces people to contribute without being able to really get around it (significantly).
Most people's first reaction to a flat tax is shocked because of the higher percentage sales tax, but it really balances back out. For instance, if you make $52,000 a year, instead of only bringing home $875 a week (after taxes) you'd bring home the full $1,000 a week.