Flat Tax or Consumption Tax - Could Blogs and The Net Lead To What Most Americans Want
April 26th, 2007 . by Arizona CPA
Congress knows that a very large majority of Americans want a vastly simplified tax code.
Congress also knows that much of its power would be removed by simplifying the tax code to its fullest extent.
Millions of Americans want a flat tax and millions of others want a consumption tax of some kind. Collectively, we citizens know, that what we have now, is almost criminal.
Research by the Tax Foundation, a nonpartisan tax research group, tells us that compliance costs to Americans have now reached $265 billion dollars. This money could be put to far better use by those who pay. The time expended also exacts a price to the nation.
Steve Forbes Plan Was Sound
The Flat Tax proposed by Steve Forbes when he ran for president was a great idea.
In today’s dollars it would exempt somewhere around the equivalent of median family income for a family of four-about $43,000. It would be based on a standard deduction and a certain amount for each exemption.
For example if the standard deduction for a married couple was $15,000 dollars and each personal exemption was $7000 a family of 3 would exempt the first $36,000 of income.
The Forbes Flat Tax could be filled out on a postcard requiring just 8 lines
The tax would be a flat 17% above the excluded amount.
A family of four with Gross Income of $45,000, would have TAXABLE INCOME of just $2000 after excluding $43,000. That would be $2000 TAXABLE INCOME times 17%, leaving a final tax of $340. This would be a vast improvement for most of these families
A family of four with Gross Income of $143,000 would exclude the same $43,000 leaving TAXABLE INCOME of $100,000, and a final tax of $17,000. This would make it flat, yet progressive, meaning the more you make the more you pay.
The flat tax would not be graduated. When taxes are graduated, you pay, not only a higher amount on more income but at a higher rate. There is proof beyond a reasonable doubt, that this is harmful to the economy and to individuals, although glib, big government advocates, try to twist the overwhelming facts in this matter.
Powerful arguments can also be made for a consumption tax. Done properly, it too would be vastly more beneficial than the present monstrosity. Both of these tax plans deserve careful exploration and consideration by the American people.
The major consumption tax being considered at present is a simple 23 percent retail sales tax on new goods and services.
Congress Will Fight Attempts To Curtail Its Power
Most congressmen know that America would soar economically if either a Flat Tax or Consumption Tax were enacted in the proper manner.
We also know that congress will put its own interest above the interest of the American people, if not forced into a change.
What is that interest? Dispensing favors for reciprocal gains-with your money!!
Mick McNesby is a former tax advisor, consultant and negotiator. He was a frequent guest on political talk shows in Atlantic City, N.J., discussing the benefits of the lower cost of government.
To Learn More About The Flat Tax, Visit: http://conservative-politics-infofind.com
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