If 51% of our population is currently not paying Federal Income Tax, what reason would they have for supporting a flat tax candidate?
If you are not currently paying Federal Income Tax because of the quirks of the code, why would you support a candidate espousing a plan for a flat tax that would suddenly shift any tax burden to you?
How does the President justify saying everyone should pay their fair share but half the people in our country pay nothing? If he thinks folks who pay nothing are paying more than their fair share, how can he say that those who pay everything don’t pay enough? What should a fair share be? How does he quantify what a fair share should be?
Having said all of that;
The chances of the US Congress passing a Flat Tax in place of the current system is zero so I would suggest we focus on “reforming” the current law to eliminate the special interest deductions everyone seems to detest and adjust tax rates so lower income folks start paying something.
Changes affecting deductions may change more quickly, but changes increasing tax rates on lower income “tax payers” should take place more gradually. Big changes coming too quickly cause big protests.
I think we all agree that the current tax code is too complex and unwieldy. But if the existing progressive system is so much more desirable, what has Congress done or what are they doing to strip away the exemptions that allow a company like GE to pay no Federal Income Tax?
Americans are upset, but it’s likely that inaction by Congress is the most frustrating reason. Let’s get the Super Committee working on deleting 2/3 of the 71,000 pages of the tax code for starters. When the Simpson-Boles Report suggested a few changes, neither side of the political aisle stepped up and agreed because of their own sacred cows; that has to change.
In my view, our government uses the tax code to shape public behavior. We create incentives for behaviors we like and penalties for behaviors we dislike.
As an example, we want folks to buy homes so we give generous deductions for mortgage interest. But, what happens to the housing industry in our country if that cash cow dries up? So is that one is a keeper; if it is, then how about the next one and the next one?
The Progressive Tax system is not an equal treatment system but it’s characterized as being more “fair” because it shifts a higher burden to folks who have been successful and a lesser burden on everyone else. I don’t understand how the more you make the higher the rate is fair! If we have to accept that application of the word “fair” as the true definition of fair, maybe that is part of the problem.
No Loss for Words 
Leave a comment