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To: Elroy Jetson who wrote (50050)	5/15/2004 11:20:07 PM
From: Taikun	Read Replies (2) \| Respond to of 74559

<A Flat-Tax would provide a substantial windfall for his family with the lost tax receipts restored by a tax increase of 60% on the lowest earning families> A Flat-Tax levied on even the poorest families would be an overly regressive tax, like the indirect taxes we already have today such as sales tax. An equitable flat tax, in my opinion, needs a threshold of the sustinence level of a poor family, measured by the number of wage earners and dependants. Why wouldn't Forbes pay income tax on his approx. $1m of investment income in a flat tax regime? That is not much different from the AMT we already have. Flat Taxes across all income, corporate and personal, above a certain threshold, would not only cause the housing market to implode, but the CPA profession, H&R Block and a significant number of beans counters at the IRS. I'm not saying it couldn't happen, just that it looks unlikely, even as voters clamor for decreased public spending instead of raising taxes to cover shortfalls in tax receipts and increased military spending.

To: Elroy Jetson who wrote (50050)	5/16/2004 1:06:23 PM
From: LLCF	Read Replies (1) \| Respond to of 74559

<A Flat-Tax would provide a substantial windfall for his family with the lost tax receipts restored by a tax increase of 60% on the lowest earning families.> I was under the impression that under a 'flat tax' scenario you would [could] still have zero taxes below a certain income threshold. While there are no easy answers, the mechanisms of tax brackets with deductions, etc. , at least the way it's practiced in most countries keep an enormous amount of energy tied up in non productive cycles of 'tax minimization' schemes. That said, I also see no reason we coudn't have a few brackets with no [few] deductions for any reason type of thing. BTW, I wouldn't worry about the super rich getting richer... if that continues all there assets will be grabbed at some point anyway. They'll be lucky to avoid the gallows. DAK