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Non-Tech : Who Really Pays Taxes?
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To: Mana who wrote (625)1/7/2003 12:13:45 PM
From: BWAC  Read Replies (1) of 666
 
I don't know if I have the time to shoot all the holes in the flat tax or the national sales tax. Any tax code will have inherent problems. And special interest groups will eventually get exemptions or tweaks in any plan. i understand anyones frustration at the current tax code. But the current answers will lead to different or worse problems.

Ok here is a start:

1.) Simplify the process? Before Sch D became in vogue, I think about 70% of the taxpayers filed a 1040EZ form. Can't get much closer to a "Postcard" return than that.

2.)Compliance cost would be shifted fromthe government to the private sector.

3.)A $5000 per person exclusion would help a family of 4. But what about that every 4th year that they buy a new car? Or a computer? Or do a significant home repair purchase? Buy a boat? Or some jewelry for the wife? Almost anything of these sorts would screw up the average $50k Household income budget by subjecting any discretionary purchases to 18% tax. A big deal for 75% of the population, a concern for 15%, no sweat for 10%. Teh $5000 exemption would serve for food, clothing, necessities in most years. Beyond that would INCREASE the poors tax burden percentage.

Plus Remember how the Luxury Goods tax destroyed demand?

4.) The retail sector would have a compliance nightmare with a $10,000 exemption card.
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