(October 8, 2021 at 12:49 pm)tackattack Wrote: @Spongebob I wouldn't say it's more fair, just better because it's simpler. I believe rich people should pay their fair share, just like us. With the parejto distribution the way it is, they just have more money to throw into loopholes and shelters to avert paying their fair share. If the law were followed in principle, rather than letter, to the effect of "Everyone should personally pay their fair share as citizens to your state and local gov't and we consider that to be 15% of your wealth". that would be simple and clear. But that's more of a wealth tax question rather than an income question. Personally I don't think we should have income taxes. I think it'd be better served using a wealth tax... but the logistics of that would be just as much a nightmare as the current income system probably.
Well you know they could fix what we have. Redefine taxable vs. nontaxable, remove caps and loopholes, etc. as a start
A flat tax would technically be more simple, but only slightly. The progressive tax rate is NOT what makes our taxes complex. This is because of deductions, single vs joint filings, child tax credits and all the other mumbo jumbo. Making it a flat tax would simplify taxes by maybe 1% and that would only make it easier for the tax software anyway. No one in their right mind does their taxes using pencil and paper anymore, not even a CPA!
A flat tax would also not necessarily shift the tax burden to the wealthy. Not only do they employ loopholes, but many very wealthy people take very little in the form of an income. Their money is handed out in ways that don't get defined that way. So fixing the problem means changing the way very wealthy people are compensated and that's likely never going to happen.
Of course all of this is fixable, but the wealthy won't allow that and they have far more influence on government than we do. I suppose you know of the recent revelation of how the rich are hiding most of their wealth in shell companies and off shore accounts. We currently have no laws that can address this and with the current political atmosphere, half the country supports this sort of corruption.
Why is it so?
~Julius Sumner Miller
~Julius Sumner Miller