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A flat tax can be complicated

Discussion in 'Politics, Elections & Legislation' started by mrskeet410, Oct 21, 2011.

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  1. mrskeet410

    mrskeet410 TS Member

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    Some think a progressive tax is inherently complicated. This is not necessarily so. It is not the progressive nature that make the income tax complicated. It is the deductions and credits that make it complicated. Remove the credits and deduction and the current system would be uncomplicated. Add those deductions and credit to a flat tax tax and it would be complicated.

    And with a flat tax a small businesses will still have to do something like a Schedule C to determine net income, so that won't uncomplicate the world for them.
     
  2. SirMissalott

    SirMissalott Active Member

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    I have read and heard quite a bit about the "FAIR TAX" it seems to me that would do the most good for all concerned. But I know the chances of it ever being enacted are slim, due to the fact it takes the power of behavior changing taxation out of the control of the politicians, and it allows the people to control they're destiny.
     
  3. The Stive

    The Stive Member

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    A simple flat tax with no deductions or other loop holes will never pass. Most
    of our elected members of congress are attorneys. They will never vote for a
    simple tax code. A simple flat tax would make it possible for us to file our
    income tax return on a post card size form This would take income away from
    attorneys and cpas. John
     
  4. shooterIII

    shooterIII Member

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    It's only complicated for left wing loonies like--OOPS--I won't say it.
     
  5. notquite27

    notquite27 TS Member

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    Cain has now seen the light and trashed his 9-9-9 tax proposal. In it's place is his new simplified one page tax return.

    A) What was your gross income for last year?
    B) Send it in!
     
  6. mrskeet410

    mrskeet410 TS Member

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    noquite - So what is gross income under that plan?
     
  7. SeldomShoots

    SeldomShoots Active Member

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    I like the thought of a flat tax. I hate the thought of a national sales tax combined with our state sales taxes. However, without limits on spending, no amount of tax, the tax rate or simplicity of calculating taxes will help us.

    John
     
  8. Setterman

    Setterman Well-Known Member

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    As long as campaign contributions are taxable, I'm in.
     
  9. Porcupine

    Porcupine Active Member

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    Stive has it right. There's no such thing as a 'fair tax'. Even if a 'flat tax' or 'fair tax' were somehow to be passed by Congress and signed into tax law, the 'rich people' would immediately start lobbying their legislators to regain the taw law advantages they currently have. And Congress would cave. Tax benefits, just like you-know-what, flows downhill.

    LA in MA
     
  10. Dickgshot

    Dickgshot Well-Known Member

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    I've heard this stuff for the past 50 years I've been doing taxes - so none of this is new. The reason the tax system is so complicated is because every tiny regulation props up some industry. It's like a house of cards. Pull out one card and the whole thing collapses. It took years to get that way and it's not going to change overnight. In fact, the more Congress tries to fix it the more complicated it gets.

    I always give one example that happened some 35 years ago. There was a
    huge abuse of people claiming the expenses of entertaining clients and customers. Congress initiated a new code section, Sec. 274 with strict substantiation requirement for deducting those expenditures.
    Almost overnight, thousands of businessmen stopped taking their customers to lunches and dinners. Restaurants were going broke by the minute. The NRA (National Restaurant Association) lobbied Congress to change the law, and though the law wasn't entirely changed, it was softened quite a bit.

    Just one minute section of the law almost put an entire industry out of business.

    Every election year I hear the same proposals about simplifying the Tax Code.
    It only keeps getting more and more complicated. That's not going to change this election anymore than it changed the last one, or the one before that, or the one before that ...
     
  11. gun fitter

    gun fitter TS Member

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    Takes a skeet shorter to make an observation like this one.
    Joe
     
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