The flat tax is a
method wherein all people pay the exactly same tax rate. That is, everyone pays exactly
the same percentage of their income to government in the form of income tax. The more a
person earns, the more money he will pay in income tax. Under the flat tax plan, there are
no loopholes for the rich. That means that they will pay at the same tax rate as middle
and lower wage earners pay. For example: If the flat tax rate were 20%, everyone would pay 20% of his
income in income tax. There will be no need for accountants or fancy, late night tax
calculations. We would each calculate our taxes as follows. To determine the amount of your income tax use: 20% of
Income = tax due. If you earn $35,000 annually, 20% of $35,000 = $7,000 tax
due. If you earn $70,000 annually, 20% of $70,000 = $14,000 tax
due. If you earn $200,000 annually, 20% of $200,000 = $40,000
tax due... and so on. The only deductions are for children and spouses. So from the tax due amount that
you calculate, you would subtract the deduction that is based upon how many kids you have
and if you are married.
Increase
Government Revenue
As of 2007, nine
east-European nations that were once part of the
USSR, have enacted flat tax plans. Each of these
nations is now achieving large increases in GDP.
Their economies are growing.
These former
communist economies' increased GDP rates range from
6% to 11% per year.
The remaining USSR
nation now known as Russia, has enacted a flat tax
plan. Its revenue -- the money paid to government by
its citizens & businesses -- has increased since
enacting its flat tax.
Why will the US be
raising taxes in 2008?
1. The flat tax
will force high wage earners to pay their fair share without being able to escape using
sophisticated loopholes, accountants, and tax shelters.
I
know that.
I disagree with that statement .
I do not understand the statement.
2. I would like
to pay less of the money I earn to the government in taxes.
Agree Disagree
I haven't thought about it.
3. When taxes
are reduced, workers -- who are also consumers -- get to keep more
of the money they earn. So, then they can buy more stuff. And then businesses need to hire
more people to make more stuff to sell to those consumers. Businesses then earn more
money and pay more in taxes.
Of
course. That is not true.
I do not understand the statement.
4. The flat tax
is calculated by taking the tax rate, multiplying it by your gross income, and subtracting
your allowed deduction for your children and spouse. Your tax return could be filed using
a post card since all information needed would fit in that space. You could also file your
income tax over the Internet in less than five minutes. Does this appeal to you?
Yes No I haven't thought about it
5. Do you now
pay too much of the money you earn in the form of taxes?
Yes No I haven't thought about it
6. Under the
flat tax would you pay more or less money in income tax?
More Less
I do not understand the calculation.
7. Knowing what
you know today, would you support use of the flat tax?
Yes. No.
I do not understand the plan.
8. US House Speaker
Nancy Pelosi and fellow Democrats talk of repealing
tax cuts for upper-income Americans that were
legislated over the recent five years. Americans
should understand that those who earn the most money
– and invest the most in the US economy – continue
to pay nearly all federal personal income taxes.
A US Congress
Joint Economic Committee disclosed that the richer
half of the American population pays nearly 97% of
all income taxes.
The richest of
the rich – the top 1% – pay 34% of all personal
income taxes collected by the US government.
About 14 million
lower-income Americans have been removed from the
income tax rolls -- they pay no tax at all -- since
2000. The daily newspaper Investor's Business Daily
reports that is due to the earned income tax credit
and the per-child tax credit.
According to the
Tax Foundation, despite recent tax cuts, the overall
tax burden has been rising. Americans’ average
overall tax burden has risen since 2004 and now
stands at 31.6% of total income due in large part to
the alternative minimum tax and increases in
property taxes.
Investor's
Business Daily newspaper states that, "With an
already rising tax burden, borne disproportionately
by those who are successful and who invest, the
Democrats’ proposed plans for large tax increases
could be more damaging to the US economy than ever
before."
Repealing recent
tax cuts -- that is, raising taxes -- has been demonstrated
over recent decades to slow the US economy and lead
toward recession.
I
know that.
I
did not know that.
I
do not believe that.
9. Some people
consider the flat tax an important issue and others do not. How important do you consider
the flat tax to be when deciding who you will vote for at the federal level?
Very important
Somewhat important
Not important
