Design your own flat tax

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

  1. samiwas macrumors 65816

    Joined:
    Aug 26, 2006
    Location:
    Atlanta, GA
    #2
    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

    colourfastt

    Joined:
    Apr 7, 2009
    #3
    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

    thewitt

    Joined:
    Sep 13, 2011
    #5
    The Federal government does not have the authority to abolish local and state taxes.
     

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