Design your own flat tax

Discussion in 'Politics, Religion, Social Issues' started by IntelliUser, Nov 18, 2011.

  1. samiwas macrumors 68000

    Aug 26, 2006
    Atlanta, GA
    I had some fun playing around with this. But instead of a post-tax credit, I'd prefer to see an option for an income expemption amount. Like the tax only starts accruing after your income crosses a certain amount. If you make less than that amount, you pay nothing, but get nothing. With just a credit, you not only don't pay anything, but may get extra back.
  2. colourfastt macrumors 6502a


    Apr 7, 2009
    How about this?

    Extinguish ALL local, county/parish, state, and federal taxes (this includes, but is not limited to, income, personal property, real estate, sales). Replace them with a single national income tax of 20% of all income over $20K. Taxes would be reported as individuals and there would be NO deductions or exemptions, except:

    Savings interest and dividend/bond payments would be tax free.
    Capital gains would have a stepped tax rate:

    Asset (home, stock, etc.) held for more than 7 years: 0% tax rate
    Asset held for 4 to 7 years: 40% rate
    Asset held for 2 to 4 years: 60% rate
    Asset held for less than 2 years: 80% rate.

    The federal government would retain 12% of the collected taxes. The state would receive 5%. If an individual lives in an unincorporated area then the county/parish/independent city would receive the remaining 3%. If an individual lives in an incorporated area then the county/parish would receive 2% and the town/non-independent city would receive the remaining 1%.

    All businesses would be taxed at 10% and there would be one standard tax form that would be almost exactly like the current Schedule C in format. This would keep businesses from gaming their taxes through convoluted tax filings.
  3. thewitt macrumors 68020


    Sep 13, 2011
    The Federal government does not have the authority to abolish local and state taxes.

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