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Should we replace our tax law with a flat tax or a national sales tax?
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Results so far:
| Flat Tax | 41% | 386 votes | Total: 931 votes | |
| Nat'l Tax | 59% | 545 votes |
Flat Tax
by Michael Burke
Created on: March 24, 2008 Last Updated: April 08, 2008
Whether we like it or not we are taxed from the moment that we come into this world until the moment that we leave this world. That in and of itself seems unfair. What makes it further unfair is the fact that some of us pay more taxes and some of us pay fewer taxes.
In a country established and based on freedom and equality the tax system fails to live up to either standard. If you are successful you'll never realize to the fullest extent how successful that you are. If you are less than successful you'll never fully realize that fact either because others are helping pay the way for you. It is like the story of Robin Hood. Take from the rich and give to the poor. how do we really know if Robin hood gave all of the loot that he took from the rich to the poor. Did he possibly keep some of it for him and his merry band of thieves? Is our government and associated bodies simply Robin Hood in disguise?
Maybe if our government didn't have such a propensity for waste none of this would be an issue. If we would stop earmarking tax dollars for special projects that hold interest for a chosen or select few we could lower the tax rates on our graduated tax system.
I fully appreciate the fact that we all have to pay for many of the luxuries that we as a nation enjoy and therefore I do understand the necessity of taxation. We need taxes to fund and support our highway system, our education system, our armed forces, our police forces and a myriad of other systems that support the infrastructure of our country.
What I do not appreciate is the fact that the burden of support is so widely varied as a percentage of income. Supposedly we all derive the same benefits from our tax-funded programs but why do some have to pay more than others to receive them.
Graduated income tax rates based upon earnings can and will cause people to eventually stop striving to earn. Why work harder to learn and earn more and then watch others less inclined to learn and earn derive the same benefits. Why does 32% of my income go to income taxes and yet someone else my same age and with the same God given ability choose to do less and pay 15%. By working harder will my interstates be any smoother than theirs? Will my kids receive a better public education than theirs? No!
Our graduated tax system creates less "bang for the buck" for high-income earners and more "bang for the buck" for lower income earners. Graduated income taxes takes away the incentive to become successful and independent and encourages an acceptance of the status quo and mediocrity.
Higher wage earners also reinvest more in our economy through stock purchases, capital gains taxes, estate taxes and larger ticket item purchases that further increase sales tax revenues than do lower wage earners. Yet while paying more in taxes they are less likely to receive any benefit from a great majority of the programs that their tax dollars fund because they are not dependent upon these programs.
Should somebody who earns $100,000.00 a year be expected to pay more in income taxes than somebody who earns $40.000.00 a year? Yes, but at the same rate. Maybe that rate is 22% annually for each person.
If that is the case then the $100,00.00 earner would pay $22,000.00 and the $40,000.00 earner would pay $8,800.00 under a flat tax. Under the current system the $100,000.00 earner pays about $30,000.00 in taxes while the $40,000.00 earner pays about $7,200.00. The disparity is still large but somewhat more palatable.
It can be argued that the $100,000.00 earner still has more discretionary money and would be impacted to a lesser extent but why shouldn't they? They earned more and contributed more and therefore should be entitled to keep more of their earned income.
We live in a capitalistic society and there is nothing wrong with that, nothing whatsoever. If we want to and expect to live in a socialistic society then we either need to move to a different country or revamp our entire government system. If we don't change our current tax system we may be living in a socialistic system soon enough even if not by choice.
Learn more about this author, Michael Burke.
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Nat'l Tax
by Anthony Megna
Created on: August 24, 2010 Last Updated: December 10, 2011
A national sales tax? A very big yes to that! The reason? Because there is something called a shadow economy that exists here in the United States, as well as in other countries. What is a shadow economy? It's also called the black market, and this market is in the billions of dollars! That's billions with a B!
A national sales tax will grab some of that money that is not being taxed right now. No matter who you are, whether you operate in a legal fashion and pay your income taxes or whether you are a criminal and prefer to operate in the dark, you have to live. You have to eat, transport yourself, breathe, etc. A national sales tax that would be imposed would affect everyone, no matter who you are.
The idea is that very, very gradually the income tax would be eliminated, and the national sales tax would be introduced starting with pennies on the dollar. Without going into all the mathematical equations, the fact is that more money would be raised with a national sales tax, and less pain for everyone, by eliminating the personal income tax. Why penalize the hard workers?
The way the tax system is set up is topsy-turvy. The income tax imposes penalties the more money you make! This is just crazy! It takes away the incentive to work hard, as who wants to pay more taxes? If you work hard, then you should be able to keep more of the money you make. That's just common sense. The more motivation one has to work and keep their money, the better off the economy will be. I'd be willing to say that this stubborn recession we're all in would disappear rapidly as well.
The other problem with the income tax as it stands now is that it's not capturing all the money that is hidden in the economy. That's money from drug-dealing, illegal gambling, gun-running and other nefarious activities. This has nothing to do with crime, this has to do with the money that is floating around as the result of these activities. Even criminals would like to see a booming economy!
What a national sales tax would do by gathering up all of that hidden money is provide a huge surplus that could go to fixing our crumbling infrastructure, as well as provide better education, health care, social security programs and so forth. It just makes sense! No one is going to complain if they have to pay a few extra pennies on goods and services. I would bet most would want to see that rather than have their paychecks shrunk they way they are now. And the people that don't collect a legal paycheck? Well, they are going to contribute as well!
So a national sales tax has win-win written all over it! Some politician should run on the basis of this issue and this issue alone! The odds are the votes would swing in their favor, unless people would rather have their paychecks taxed to kingdom come.......
Learn more about this author, Anthony Megna.
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