Why not do away with the tax laws all together and go to a simple flat tax?

Question

My plan is to have a simple flat tax. I don't know what the number would be, but for the sake of this question, let's assume it is set at 20%.

Exempt the amount up to the minimum wage: Currently at $7.25/hr, a 40 hour work week yields $15,080 per year for a single person, or $30,160 per couple. Forget the kids: if you can't afford them, don't have them.

Everything over that amount is taxed at the rate established, in this case, 20%. No loopholes, no deductions, no write-offs.

Effect:
-There would be no need for the IRS.
-There would be no need for personal accountants.
-There would be no class warfare. Everyone pays the same rate.
-There would be no need to fight over which party raised or lowered taxes. If a party voted for them to go to 21%, that would be an increase, to 19%, a decrease.

Tax Day:
Taxes would be simple to figure:
-Take total income.
-Deduct $15,080 if filing single, or $30,160 if filing joint.
-Multiply the balance by 20%.
-Send it in.

Your individual state can do the same thing: establish a flat rate and follow the same procedure.

Answer 1

The problem is that there are more ways of earning money than just salaries and wages.

Businesses still need to calculate business income. Sales of property and stock still need to calculate cost basis. There would still be the problem of unreported income. In other words, the IRS and a lot of rules and regulations would still be needed.

And as others have said, a flat tax is regressive. $2,000 to a person making only $25,000 is a terrible burden. Not to mention if they have to pay State Income tax as well.

Answer 2

You mean well I'm sure but the politician would put your numbers in a blender and the working man would be averaged in with the rich man.



No>>>>>> Bad >.>>> For for working families



If you have ever worked in a state that has an income tax it's total robbery for working families and a flat tax would be no different.



I finally convinced my brother to get the hell out of Oregon we argued that income tax for years.Now he cant thank me enough gave himself a $23.000 a year raise same annual income. That's $23.000 that he get to decide how and what to spend it on.



A flat tax would be no different also know as an income tax.

Answer 3

the IRS is in simple terms setup so liberals have jobs the elites understand they cant make it as capitalist and have a genetic affliction that craves huge government and ambiguity. So collectively as they sit down there all day making the tax code all distorted unnecessarily all of us go through so as that they are in a position to have a job.

Answer 4

A flat tax is abusive to average families (-those making under $75,000/yr). There is such a small margin for them to operate on from month to month that it is difficult for them to shoulder any more tax burden. Since our nation feels compelled to keep 11 obsolete aircraft carriers in operation "projecting" our military might, hundreds of overseas outposts and military bases doing the same, and fighting unnecessary wars we need to compel that 1% of our nation's population that accounts for 43% of the nation's net worth to step up to the plate and pay their fair share. Trust me, there'll still be plenty left over for them afterward.

-retired vet of the 82nd ABN Div.

Answer 5

Because the lobbyists would never allow a flat tax with NO LOOPHOLES. Very fast you would see the lobbyists for the rich add more and more loopholes thereby putting the burden fully on those who can least afford it.

Answer 6

Flat tax is the most abusive tax system that can be invented. There is a good reason we have

the more complicated tax structure in place now. It is fair to families. And families pay for themselves in the long run, while individuals do not.

A nation must keep a stable population.

Answer 7

It would be very hard on the poor, who spend a much larger percentage of their income on sustenance.



EDIT: I read your question, it's still a concern that you've failed to address.

Answer 8

In virtually ANY method of taxation, there are going to be problems



Here's a good analysis.http://en.wikipedia.org/wiki/Flat_tax

Answer 9

If EVERYONE paid their share the rate would be about 5%... Back to your point... that makes too much sense!

Answer 10

This come up quite regularly as an idea ...

http://en.wikipedia.org/wiki/Taxpayer_Choice_Act