Taxation

[dawgball]

Can anyone of you that know way more about this than I do provide the amount of income taxes that are collected and the amount of total income that those taxes are based on.

Just totals would be helpful.

I think I need to read a book on the "fair" tax to get some of these answers.

What I'm really looking to find out is if the first $30,000 (number drawn out of the air) was not taxed at all, then everyone paid the same percentage rate on anything over $30K (or given number), what would that percentage have to be to equal the current tax revenue that is generated?

This thread is not meant to be partisan either way because I am no economist and don't have a desire to try and fool people into thinking that I know anything about this.

 

[dawgball]

Come on, fellas

 

[djv]

I would need to find a heck of alot of numbers to try and answer.
I do know that Steve Forbes said this several times. Everyone gets first $20000 tax free. This is federal only. After that it's 20% for all other income. No other deductions. He stated it would bring in 150 to 200 billion more then we do now. And tax prep would be a snap. Just need one piece of paper. This is not dead on how he said it but real close. He also said saving at the IRS to run it would be in the billions.

 

[dawgball]

Thanks, djv.

Besides CPAs, who is opposes this type of tax structure? What are the reasons?

 

[Chadman]

I think examining a flat tax or some kind of tax like this idea would be worth a look. I certainly can understand the fairness theory of the same tax rate - as long as the tax breaks and deductions are not permitted for those wealthy enough to take advantage of them in situations that others cannot. If everyone paid the same, I can appreciate that idea. But it has to be across the board, without the deductions many are accustomed to. As much as the very wealthy claim they want equal taxation, I think many would balk at losing their deductions. Also, I think it fair that Americans should not be able to avoid taxation by holding money in offshore accounts, or having income sent to those accounts to avoid paying taxes.

It's an interesting idea. Steve Forbes has a lot of good ideas, and should have been worthy of more interest in the political sector.