Income Redistrubution

10-21-2008, 10:52 AM

Quote:

Originally Posted by cologal

I would like to explore the flat tax rate options. Part of the issues with the tax rates are all the exemptions. Hardly anyone pays at the rate their gross income would suggest. And that goes for business also.

When to get to the lower incomes, except for children, they have less exemptions. And therefore pay at almost the full percentage.

The was a report that tax attorneys are already offering off shores packages to hide income from the tax man if the rates go up.

Here is an interesting report on the flat/consumption tax issue. http://www.taxpolicycenter.org/publi...cfm?ID=1000530

It still points out a class distribution difference. I can see no point in offering a flat tax proposal that still has different rates for different income levels. A % is a %, whether on $1 or Billions of $. Taxes are called progressive if one takes from higher up the income ladder to reduce the taxes on the bottom. It's regressive if the taxes are taken from the higher income to reduce the taxes on the bottom. In both instances the higher income people pay more whether viewed from the top or the bottom.

Income Redistrubution

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