IRS: 14% or $300 Billion in Taxes Go Uncollected.

[Jenn! 918]

I don't think that households making less than $50,000 (in this area at least) should be paying any taxes at all.

In NJ, I'd agree. But $50,000 is good money in many parts of the country. They should be taxed there. A uniform tax code across this entire country is asinine. This country is too big and too diverse.

That is what state and local taxes are for. You can't pro-rate federal taxes to take into account the different cost of living. Everyone, from those making 10K/year to 100M/year should pay something. A flat tax just seems like the fairest way to go.

The VAT is interesting as long as the federal tax system was scrapped. The more one makes the more they tend to spend so that would work there. To help the poor things like food and utilities should be exempt from the VAT.

Why couldn't you factor in COL to tax schedules? I don't see why it would be so difficult.

I think that an overall flat tax is effectively regressive

ETA: Oh, and that's not really what state and local taxes are *for*. The effect is that people pay different amounts depending on where they live, but that's not really the goal.

Edited March 10, 2007 by jenn3539

[w¡n9Nµ7 §£@¥€r 123]

I know several people that turned down better jobs because it put them in a higher bracket and in effect they would make less.

That could never happen -- only the excess amount is taxed at a higher rate.

Exactly, mawilson. Yet that is a very popular urban legend. Right up there with "the rich don't pay taxes".

[w¡n9Nµ7 §£@¥€r 123]

Everyone, from those making 10K/year to 100M/year should pay something. A flat tax just seems like the fairest way to go.

The VAT is interesting as long as the federal tax system was scrapped. The more one makes the more they tend to spend so that would work there. To help the poor things like food and utilities should be exempt from the VAT.

The VAT isn't such a great idea. It requires a lot of administrative overhead. Much worse than SOX.