The Flat Tax Alternative – Sliding Percentage
A Flat Income Tax does not require a constitutional amendment. A simple change in the rate structure and regulations passed by Congress and signed into law could wipe out arduous record keeping and many hours of angst by employers and income earners alike. Eliminating complex deduction rules will eliminate the (deductible) expense of accountants and tax preparers. Those with the most income would pay the most in taxes by eliminating tax avoidance schemes and special loopholes. A Flat Tax ensures EVERYONE pays some tax and therefore has some “skin in the game” to provide more interest in where and for what their tax money is being spent. No one, regardless of income over a minimum amount would get a free ride. All income would be taxed including welfare, public assistance, social security, etc.
A modification to the Flat Tax concept is a sliding scale rate such as
one percent (1%) per $10,000.00 income up to a certain limit such as 39 percent.
A person making $20,000.00 a year would owe two percent or $400.00.
A person making $50,000.00 would owe five percent or $2500.00.
A person making $100,000.00 would owe 10 percent or $10,000.00.
A person making $300,000.00 would owe 30 percent or $90,000.00.
A person making $500,000.00 would owe 39 percent or $195,000.00
A person making $1,000,000.00 would owe 39 percent or $390,000.00
This is per person NOT per family. There are NO DEDUCTIONS. A postcard return would simply have How Much You Made times the appropriate percentage for that income amount, equals total tax owed.
The Flat Tax does require Congress to give up their power to reward their friends and punish their enemies with manipulation of the tax loopholes and deductions.
I am not sure where this particular example comes out in the "revenue neutral" concept but cutting spending and a balanced budget amendment are also needed.
Where am I going wrong here?
Carl Anderson - Hampton VA