I used to support the falt tax idea, but when I found out about the FairTax, I threw my support to the FairTax. An increasing number of articles and stories about tax reform were appearing in the media and the internet. It was becoming increasingly clear that the current US tax code had become a problem that we must address and solve. One of the proposed reforms is the flat tax, described in Steve Forbes' book, "The Flat Tax Revolution." The flat tax reform proposal in Congress (HR 1040) is a definite improvement over the convoluted tax code. Filing simplified tax returns on a postcard is appealing and has some popularity. However, history shows us that a flat tax doesn't offer a permanent or satisfactory solution to our tax code problems. The income tax started out as a single rate (flat) tax. Under the control of government and isolated from the People, it gradually grew into an oversized, complex mess, with numerous loopholes, multiple brackets and high rates. In 1986, the tax code was overhauled, simplified and reduced down to two brackets. Many deductions and loopholes were eliminated. Today, we are up to six brackets, and most of the loopholes are back. This demonstrates twice over that a flat tax simply won't stay flat. It leaves the current tax code in place and sets the stage for another return to the system as it is now. Congress has the power of legislation, and We the People have little input or control. Lobbyists will continue to use their influence to procure tax breaks for special interests. They have more access to congressmen than We the People have. Precedents have been set. Each tax break complicates the tax code just a little more, and they all add up to a code with over 66,000 pages that even tax professionals don’t fully understand. Finally, a flat tax is still income tax; it is contrary to the founders' vision as set forth in the Constitution. The income tax was made possible only after self-serving politicians did an end run around the Constitution and the People in 1913 and took powers for themselves that the Constitution denied them. In the last Congress, the FairTax Bill (HR 25) had 58 congressional co-sponsors; the Flat Tax Bill (HR 1040) had six. Rep. John Linder (GA) introduced HR25 (The FairTax Act of 2007) to the 110th Congress on January 4th, 2007. It already has 33 co-sponsors. The Flat Tax Bill (HR 1040) has not been introduced yet. Popular support for the FairTax is strong and growing; flat tax support has all but vanished. Two very successful FairTax rallies have taken place; no flat tax rallies have been held or planned. The FairTax Book has outsold Steve Forbes' book "Flat Tax Revolution" by a very large margin. Income tax in any form, flat or graduated, is unacceptable. It's time to scrap all income-based taxes once and for all and replace them with a single one-time retail tax, one that we control. At the same time, we need to repeal the 16th amendment so that income taxes will remain a memory. Once enacted, the FairTax will shut down the income tax code and replace it with the consumption tax. Companion legislation, to be introduced to Congress soon, will start the process toward a constitutional amendment that will repeal the 16th amendment. The flat tax was a good idea in its time, but that time has come and gone. Let's give the FairTax a chance. www.fairtax.org Chad Sargent FairTax Volunteer Raleigh, NC
sounds like a good idea what happens if people consume less though? if something is 50% more expensive due to the tax then i might not buy it (?) if something is x% more expensive due to the tax then i might not buy it (?) would that situation happen?
My thoughts as well. It would work very well for me, because I don't spend money on BS. I'm wondering if there's been studies into what sort of real revenue could be expected from this. In general it would work for the extremely poor savings rates we have in America. I myself am very anti-big government....I wish we restricted government allocations to the military, and handful of real constitutional purposes. So on some level I think any way to make it a more self-government direction...where power of tax is highly limited. Perhaps it could be better if done properly. IDK. I'd rather have a constitutional limit on spending or a revolution towards small government ie a new enlightenment. I could dream. ----------------- We're going to hit a bump in the road soon, so it's eventual we make big choices. To me either it's small government or bust...or fucking suffocating government and bust.
I liked that flat tax a lot better. if you closed the loopholes involving services (lawyers, etc) and taxed everything when money changed hands - stock deals, etc. You'd easily fund the government with a less than 10% rate. It'll never pass for a simple reason - accountants and lawyers. It'll put too many out of business and they are a huge lobbying group and donate lots of money. Good policy never survives better donations Plus, there is no incentive for government to fix any problem. If a problem is fixed, you don't need them anymore. Government's job is to make sure the problem exists in perpetuity just a slightly less inconvenient rate.
yeah what do u guys think of the Hong Kong model of flat tax? do you think that would work? what do u guys think about the UAE system of no tax? can anyone enlighten me on how that actually works? thanks -adrian
"The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." Sounds like all spending except for defense needs to be cut immediately, if spending was only 25% of what it is today taxes would be dramatically lower. Also, we need to stop paying interest on our own money to a collection of private banks.
Take a bite out of that 56% of social spending and we might actually eliminate the debt in 5 years or less.
LBJ's reign really changed the face of politics, but I'm not going squarely blame him,...as he had an overwhelming push from a clear majority (of democrats). That along with NIXON'S decesion to cut us from the gold-standard.. it all had a really big effect on the format of spending and government.