11 Countries Sign Historic TPP!

[Economy 53,075]

30 minutes ago, Gaga Monster said:

Agree. The reason I agreed with a flat tax of about 16% on all incomes (business & personal) is that it will help end corruption and bring in more revenue when taking into account GDP growth. The thing is that the top rate is 37% in the US, but no one pays that rate because of the loopholes, tax lawyers, and paying off politicians to get more changes to the tax code. If you just throw the whole thing out and have a flat rate, but make the first $50,000 for a family of fours income tax free, making it not regressive, it will be good because everyone will pay the same rate if you are wealthy. Some people pay 30%, some pay 15%, and some pay nothing in our current system because of deductions and loopholes. If you just throw all the pages out and start fresh with a flat tax and limited deductions, there is no reason for tax lobbyists and tax avoidance. It increases the amount of income reported, decreases tax avoidance, increases GDP growth, and will bring in more revenue. 

Here is Rand Paul's flat plan, 14.5% on everything (i think is too low)

https://taxfoundation.org/economic-effects-rand-paul-s-tax-reform-plan/

The Tax Foundation says Rand's plan will bring in $737 billion more dollars over 10 years when taking into account the massive GDP growth of a simpler system. If you make the tax system simple, file taxes on a simple postcard since everything is taxed at the same rate and there are only 5 deductions available, corruption will lessen and revenue increases. A win win for the US

Ok if I take out loopholes then I agree with a much lower tax rate. I still think taxing a rate a little higher at the top tho has more benefits than any negatives but that's my opinion. For sure tho without loopholes I'd set it lower. I wouldn't tax top bracket 40% if the loopholes are gone

 

Here in Canada the top rate used to be 29% under the Conservatives but Trudeau raised it to 33%. It sounds low but taking into account Provinces add a bit too it, it's actually more like 40% or higher depending where u are

 

On a side note, I take "higher revenue from higher GDP" with a grain of salt when politicians say that because since your taxing the economy at a lower rate, the economy has to be much larger for the same revenue...

 

Tax cuts are good for economy but you need huge ripple effect to get a 1:1 ratio in terms of revenue neutrality... For $1 dollar in tax cuts you need a lot of growth for GDP to fully make up for it 

 

For example, if an economy has a general taxation of 25% of GDP but you cut taxes to 20% of GDP, then you need a ripple effect multiplier of X5 for every $1 of tax cuts to be fully revenue neutral which u rarely ever get

 

If to get taxation down to 20% of GDP you cut taxes by $200 Billion, then the GDP growth would have to be $1 Trillion to be revenue neutral

 

That's why Trumps tax cuts will never be revenue neutral like he says and he needs spending cuts with it

[Woolfsmck 2,763]

Well well well...flat tax ......😎

[Economy 53,075]

1 hour ago, Woolfsmck said:

Well well well...flat tax ......😎

I've never agreed with it. I don't like taxing the rich too much but a completely flat tax on income I'm not in favor of

[Gaga Monster 13,001]

2 hours ago, Woolfsmck said:

Well well well...flat tax ......😎

 

Flat Tax is great and Democrats should support it since all rich people would have to pay taxes, no matter how many tax lawyers and tax lobbyists you have. It is a beautiful system that will get rid of all the corrupt lobbyists. Our tax code is over 70,000 pages long, filled with loopholes and corruption. Toss the whole thing out and get rid of all the loopholes and deductions except for a few. Make people pay the same rate, increase revenue, increase GDP, get business back into America, make America competitive, and have a generous standard deduction of $50,000 for a family of four so it is not regressive and boom the corruption ends and more revenue comes in. 

A lot of Eastern European countries tried and all of them had tremendous GDP growth and tremendous revenue increases. And what was better was that more income was reported, people didn't have a need to not report income and do tax avoidance since it was being taxed at a lower rate. 

Again, I am a Liberal and I think the flat tax is just a beautiful system. Combine it with Medicare For All Universal Healthcare and the middle/lower classes will be growing, wages will go up, and we will all be healthier.

I think it is a good deal.