Would it solve the tax problem in America about equal pay? I would like to see the lower through upper class pay almost the same amount in taxes instead of a progressive tax or trickle down economic theory. What is the best method of taxation to get this done?
Economics - 4 Answers
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1 :
Fairness?Fairness? in America? The only fair tax is no tax...
2 :
The only reason we must pay tax, is because the government was convinced by bankers in 1913 to create its money by using a debt-based monetary system, managed by the Federal Reserve Bank. In fact the IRS was created about the same time the Federal Reserve Act was passed, in Congress in the middle of the night around Christmas eve. The interest on the money created through public debt must be paid by tax revenues coming from the citizens pockets to pay the bankers and the buyers of government bonds and bills. If the government would use its constitutional right and mandate to create money by fiat, through a credit-based system, it would create all the money it needs to operate, and provide very low interest credit to all citizens and businesses, without ever mentioning the word tax. Economic activity would go on just fine, because money is just a token that represents the value of all goods and services. The token itself is supposed to be worthless. What has happened is that the Bankers have turned the token into a "commodity", which is being "traded" as if it had real value. Until the general public is made to understand this fraud, there is no hope of solving the problem.
3 :
The so-called Fair Tax is a tax consumption rather than income. Therefore shifting away form income to consumption would increase the amount of income produced and reduce the amount of consumption (i.e. raise the level of saving). If you could literally prevent Congress from taxing income again, it might be net beneficial. History would tell you that eventually you would end up with taxes on both, which would simply make it easier for politicians to raise the total level of taxation. Take a look at the history of the income tax in the US form its inception.
4 :
A flat income tax would work only if there was a wealth tax included. A flat tax without a wealth tax on high earners would eventually put ALL wealth in the hands of a tiny percent of the population. The graduated income tax takes this into consideration. At one point it worked very well as President Teddy Roosevelt originally implemented the concept. No rich guy ever went belly up paying his taxes and no working class guy ever went belly up either. Over the years the top percentage paid dropped from 90% at the highest part of the six level progression down to 35% today as per the Reagan changes. At that point what Teddy Roosevelt feared began to happen. The 'rich' began to get much richer faster and because of a dearth of social services and benefits of citizenship the working class began to rapidly lose ground. Returning to the tax plan as worked out by President Bill Clinton would begin to reverse this trend....for whatever reason the GOP is opposed to doing that. One wonders why. In the 21st century the American wage earner requires several things from their government....quality education at public expense up tp and including the university level, decent retire partly at government expense and medical insurance paid for by individual premiums and government expense. The 'government expense' part seems to be a stopper until you understand that no money ever vanishes....it all gets recycled into the economy....but that's another story. Short answer: The progressive income tax IS a Fair Tax as long as the progressive steps are do not enrich or impoverish anyone....that's the definition of 'fair'. Give it a think!
