Sorry if it's been discused. Been out of the loop. Upon a very high-level review of it, it's something I could jump on board with and see actually working. Thoughts? Conservatives Divided Over Cain Tax Plan - WSJ.com
The problem with any flat income tax is also scrapping the tax credits, deductions and other loopholes that the progressive system allows smart and creative people to manipulate. Flat taxes have only worked in developing economies with weak -- or non-existent -- progressive systems. Now, a number of states have flat taxes currently on the books, but states don't have near the complexity of the federal tax code. I'm not opposed to it, but many people are addicted to the tax refund they receive in April. In a true flat tax -- at least as it was proposed years ago by Hall-Rabushka -- those things would go poof.
Would a flat sales tax ultimately raise the same amount of money? If so, how could it NOT be pushing more of the burden on the poor? Just asking genuine questions, not wanting to start a pointless political posturing thread.
Given what I have read, first there wouldn't be a payroll tax of 6.2%, so that would help. Second, I can't imagine any scenario where this would not have an exemption amount. Third, most of the working poor, through the earned income credit, really don't even pay hardly anything now because that 6.2% is largely offset. While I get the argument, you are essentially taking their overall tax burden from 0% to 2 or 3%. I'm sorry, that's not exactly grounds to call in Robin Hood.
This be the problem; or the heart of the matter. The Federal government needs to shrink, and become less complex in need and nature.
you also have people who make up to 50k a year who don't pay fed. taxes which is a joke and some of them get tax refunds. for what? they didn't pay shit
I would rather deal with the most complex federal return imaginable than do a ca, ny, nj, or mi corp return. They are a mess. More and more states are also adopting a multiple tax rate system too.
i'm a fan of his tax plan though i can see teh "screwing the poor" argument. i believe europe has a vat refund for low income people. we could do the same.
So I pay a little bit better than 18% on such luxury items as food. Well, unless someone can sell me a used hotdog.
999 | Herman Cain for President here you go the 999 plan is a stepping stone to the Fair Tax, which is entirely consumption-based.
means you are witholding too much every month. has nothing to do with whether you are paying too much or too little (from a macro standpoint) in total taxes a year.
Yeah they do. It's called the Earned Income Tax Credit for low income people. It's hands down the most abused portion of the tax code, but you will never hear a politican say that.