So i asked my mother about the flat tax. and how it would benefit america. Shes a CPA just for the FYI and why i asked her.
here is the issue with a flat tax. Flat tax is meant to simplify the tax code and elliminate the IRS. Seems simple. However did you know with out the IRS you dont get to claim any deductions? NO savings no donations no deductions for what you pay on your home or interest paid. Nothing (too many deductions to even list them all, thats why I love my mother... Free accounting and taxes).
I dont know about you guys but i love my deductions and my credits come return time. But yes i guess you could do the math and simply lower the tax bracket but thats another converstion. I think a use tax would be a better system .If you can afford to buy it then you can afford to pay the taxes on it. Observe washington state that has no state income tax but does tax heavily on non essential goods (anything but food and clothing basicly) we can start a new thread on that one but back on point
My original question still stands unanswered. Ron Paul does not support a flat tax or sales tax. He does support aboloshing the IRS and the income tax and i quote "replace it with nothing". If that is the case how does the Fed bankroll the goverment?
That's right it does elminate the IRS. You talk about deductions. If a person such as myself pays out over 30% in taxes throughout the year and files at the end of the year. With my return I still payed out 20-25%. If a flat tax rate of say 20% were instituted I would pay the same or less in the long run without having to deal with all the IRS BS. Not to mention flat tax is payed when you purchase something. So the money you save is not taxed twice(once on income and once on sales tax) and not at all until you spend it. Now all those who work under the table(bartenders,waitresses,landscapers etc. etc. etc.) cannot evade paying their fair share reducing the tax burdon to those of us that do pay our taxes.
No offense to your mother but she is a CPA and she will dissagree with a flat tax rate because it would put her out of buisiness. No tax returns to file, No need for CPA's.