Flat Tax Pros and Cons
Browse articles:
Auto Beauty Business Culture Dieting DIY Events Fashion Finance Food Freelancing Gardening Health Hobbies Home Internet Jobs Law Local Media Men's Health Mobile Nutrition Parenting Pets Pregnancy Products Psychology Real Estate Relationships Science Seniors Sports Technology Travel Wellness Women's Health
Browse companies:
Automotive Crafts, Hobbies & Gifts Department Stores Electronics & Wearables Fashion Food & Drink Health & Beauty Home & Garden Online Services & Software Sports & Outdoors Subscription Boxes Toys, Kids & Baby Travel & Events

Flat Tax Pros and Cons

My take on flat tax -from listening to all the flap on tv and financial news.  To me, the flat tax is the fairest of all proposals out there.  If one cares to purchase something (or can afford it) they pay a flat tax on the item they purchase. This offset having personal income taxes -which is entirely unfair!

Consider the person on the lowest rungs of the ladder that can't buy items beyond the necessary staples in their lives.  Some proponets of flat tax say that it will not include things like food, shelter, and utilities. So once the basics are covered, a taxpayer would only pay a fair share of taxes based on items that they purchase -beyond basics.  So let all those that don't/won't/can't save money buy whatever they want and pay a tax on those items.

For a moment consider someone that has to pay property taxes, child support, and income taxes.  All these are income and initially taxable, then they can't be deductible.  Add on other items like insurance for a house, car, and health that also can't be deducted and you are taking most of the lower income families free money by taxing them -AGAIN on that non-deductible income -under the current tax structure.  But in a flat tax, they would be exempt from paying tax on items that they don't or can't pay.

Beyond food, shelter, clothing, utilities, and health care, items should be taxed.  If you are a high income earner and can afford 'toys' then you would have the free choice to pay the tax on items you buy. so, if you choose to 'blow' your income on items beyond basic living costs -you pay a tax!  It is the only fair system of taxing there is.

And likewise, if you choose to save, invest, sell stocks, buy or sell realestate, you mother's wedding ring, and you save the money -you don't pay a tax.    It rewards people who want to be self sufficent, and live within their means. responsible people would be able to save for a solid retirement and everyone wouldn';t be considered 'taxcheats' and have to spend countless hours, and money trying to comply with a tax code that can be read 'six ways to Sunday'

There would be no "fat-cat" expense writeoffs, if Topcat wanted to take a trip to a retreat, he would be paying a tax for the Airplane, the hotel, and food -period, and it wouldn't be at other taxpayers expense.   So, a top Diva's wardrobe, that she is currently deducting, wouldn't exist, as she would have paid the taxes herself, instead of your grandmother, on social security, paying for it... 

I hope I have turned some heads to this matter, as it is time for us to demand a fairer taxation, that becomes our responsibility.

Consider not having to pay real estate taxes, inheritance taxes, estate taxes, just a flat tax on YOUR SPENDING beyond basics.

Additional resources:

Need an answer?
Get insightful answers from community-recommended
in Tax & Taxes on Knoji.
Would you recommend this author as an expert in Tax & Taxes?
You have 0 recommendations remaining to grant today.
Comments (0)