Need to explain to your Mother-in-Law why a flat tax isn't the answer?

[rgbecker]

This is worth the read if you are attracted by the talk of a "Simple" flat tax. 999? not for me.

http://news.yahoo.com/mayor-simpleton-223900842.html

From the "Daily Beast".

[Gman]

1. I would say that relatively few people know that tax rates are tiered

Among that know are the more educated, and higher income earners. I think the majority, if not the vast majority, aren't aware of the tiered tax system. Otherwise, the right wing would not be implying that proposed tax increases on the rich would increase taxes on their entire taxable income. They take advantage of every chance they get to distort things.

[bluestate10]

7. You are right. nt

[HughBeaumont]

2. And then if she asks about a "Fair Tax" . . .

. . . well, that sucks also (lively and humorous discussion with Fair Tax troll).

All you really have to do is look who champions these rotted chestnuts - fiscally comfortable Republican males, idle Ovarian Lottery winners like Steve Forbes . . . and (not) Joe the (not a) Plumber.

[IndyPragmatist]

3. They know exactly what it does. That's the point. They are trying to get income taxes from the 47%

that don't currently pay income taxes.

From their point of view, it is unfair that half of Americans don't pay income tax. Personally, I agree that it is unsustainable to allow that many people to not pay income taxes, but a flat tax isn't the answer. Tax brackets are there for a reason and we need to use them. Just get rid of all the loopholes and ridiculous deductions and we will be fine.

[rgbecker]

4. I'm going to guess 90% of those who pay no income tax have little or no income.

The other 10% have found some good deductions...like they have capital gain income and dividends which the republicans have decided deserve special treatment. Meanwhile, other taxes and deductions for social security and medicare kick in right away for those earning as little as $400 a year and kick out for those earning over $106,000. And in most states every cent spent is taxed via sales tax hitting those who must spend everything they earn to get by harder than those who can stash some of their earnings under the mattress.

Now every republican candidate has come out for less social security and medicare benefits and against raising taxes on the millionaires....and there are Americans willing to vote for them!

[former9thward]

5. Depends on your definition of "little or no income".

If you are single you can earn nearly 19,000 and not owe any taxes. If you have dependents that number goes up rapidly. That is because of the personal deductions and the standard exemption as well as other tax credits.

[bluestate10]

6. Get a tax table.

Show your MinL what her rate is now. Show her how much she pays in dollars. Show her what she would pay under a flat tax. If she is an average working american, she will get screwed by a flat tax. Maybe your FinL is not doing his job and your MinL will be happy, but most working class americans won't be. Show her the money, cut out the flowery society will suffer argument, show here the money that she will be sending to the pockets of people that already have a lot more money than her.