On Fri, Mar 4, 2011 at 9:29 AM, Robert Duquette <robertduquette@sympatico.ca
> wrote:
> Probably the part that makes people think, is that all loopholes and
> deductions (theoretically) get removed under the flat tax system and
> everyone
> is then taxed on actual income, not income after deductions.
>
Bingo, Robert. What it does by eliminating all the deductions and loop
holes is to
insure that the wealthy DO pay their fair share. Presently quite a few of
them use all
the loopholes and deductions as well as hiding income in foreign banks so
that they
are not paying their share. This is less true of the individual wealthy than
corporations,
many of which pay little or nothing in taxes due to the exclusions in the
code.
The current tax system is a horrid mess of regulations, exclusions and
exceptions
which become even more complicated the more income one has. Large
corporations
often employ a whole team of tax attorneys whose job it is to beat the
system -
something they excel in! The small guy can't do that and therefore bears the
bulk of
the burden. Moreover, something like 40% of the US population pay no tax at
all.
Finally, the IRS has become a bureaucratic leviathan costing more to keep in
business
each year and doing what all bureaucracies do, complicating the issue daily.
A flat tax ain't the perfect answer, but it's way better than what we have
now...
-
Cheers!!
Jim
Then there was the mind reader who moved to Washington, D.C. and couldn't
find work.
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