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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Spots who wrote (1067)	4/26/1998 2:52:00 PM
From: Colin Cody	Read Replies (1) \| Respond to of 5810

Three quick points: I understand some of your points under the 43% heading, but I still don't see why a good deal of it doesn't go away under a genuine flat tax. Guess I'm tax illiterate at that level (thank goodness!). NOT ONLY DON'T THEY GO AWAY IMO, CPAs WOULD HAVE INCREASED BUSINESS. The Businesses would now be required to file National Sales Tax forms (under NST) Businesses AND individuals would require EVEN MORE creative CPA planning to LOWER THAT TAXABLE INCOME. example: Individuals get creamed under Flat tax (NO deductions) BUT businesses are allowed deductions. RESULT. CPAs will be incorporating individual's revenue sources! Although I would certainly like the complexities of the tax code to go away, and I think you understate the economic direct savings from that considerably (in the long run), I'm MUCH more interested in, first, fairness, by which I mean everybody pays the same rate on any kind of income (I do NOT mean that you should transfer some of your wealth to me just because you got more, which is the effect of graduated scales, or vice-versa, which is often the effect of tax preferences), and second removing the tax code as an implement of social engineering and economic distortion. THE FLAT TAX IS NOT FLAT. THE FLAT TAX IS NOT FAIR. Anything that would allow FORBES to get off SCOT-FREE while the rest of us pay is not FAIR. The tax is NOT flat I mean everybody pays the same rate on any kind of income From TODAY's Paper: Armey's Flat tax. Wages $49,890 Interest $509 "deductions" $33,800. DEDUCTIONS?!!! That AIN'T FLAT That means the RATE is as follows: WAGES TRUE Rate $20,000 -0- $40,000 2.6% $60,000 7.4% $80,000 9.8% $100,000 11.3% The Paper ALSO admits Armey's "17% rate" comes up $113 billion short in the budget! THAT's how your taxes are reduced! We could cut the spending TODAY $113 billion, and lower the rates from say 28% to $23% and accomplish the same thing, RIGHT NOW TODAY!!! removing the tax code as an implement of social engineering and economic distortion. If you did that we'd be left ONLY with the options of ENFORCED Federal REGULATIONS and LAWS and a POLICE STATE to make sure they are complied with. i.e. every Monday you rich folk must have a family of poor folk over to the house for a bar-b-que <g> or more realistically "you rich folk" pay 300% more for medical services, and the "po folk" get it for free. Or "anyone with $300,000 in net worth MUST for National Security purposes, invest 10% of their money into domestic oil and gas exploration & another 10% into LOW-INCOME subsidized rent-controlled housing for the poor." Get the picture? <g> Colin