Quote:
Originally posted by hoosier
1 - nobody likes the current IRS system. I know of nobody pushing a "flat tax", it's the "Fair Tax Plan" which has the traction.
2 - if you have substantial income, you're already paying a lot of taxes
3 - all people (rich and poor) would receive the identical monthly refund ($460 in my example). This means the poor who now may pay almost no income taxes (due to deductions, earned income credit, etc.) would be paying no sales tax on their first $2000 per month in purchases, AND would pay no FICA taxes either. The poor would be better off with "The Fair Tax" plan.
4 - In addition, it gives the upper income groups more money, which they are likely to spend, buy services and products which lower income groups provide and mame.
It has a lot going for it. Don't confuse it with a flat tax.
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I can't really discuss these points w/ my cursory understanding of the plan, except in theory or generalizations - so here's another question, since you're far better versed in this particular plan:
It seems specious to claim "everyone gets lower taxes! the rich, the poor, everyone!" How is this lower governmental tax intake accounted for in terms of spending cuts? In short - who takes the cuts? Where does this money come from?