Friday, May 23, 2008

Flat Income Tax - Why Such a Dead Issue?

Imagine all individuals and organizations paid a flat 8% Federal Income Tax and a flat 8% State Income tax. In return, you paid no property taxes, no sales taxes, or any other government taxes. There would be no homestead exemptions, or tax deductions except one. The only tax deduction would be a charitable donation to a legitmate government approved charitable organization. All charitable organizations and religous organizatons would also pay the same flat tax. There would be no inheritance tax, no tangible tax, no intangible tax, no capital gains tax. ALL income is taxed at a flat rate. One simple calculation. No tax accountants, no offshore accounts, no loopholes, and the IRS would be a tiny fraction of its current size. Tax law could be written on a singel page! Imagine the time and money saved! Sounds fair to me. Can't think of a scenario that isnt fair! I think there is a rate for Federal & State that would affordable to everyone and would generate enough for our governments to eliminate deficits, build schools and roads, solve health care, correct the balance of trade and more! The probblem is that there are so many special interests with their hands holding firmly onto the balls of our politicians, our politicians don't have the courage to actually advance this idea. Tax the church? Sounds like the end of a political career to me! Anybody got the stones to propose that? Don't you think religious organizations can get by with 90% of their donations and other earnings? I dont know what the flat rates would be, but I'd bet they would be palatable enough for everyone except the wealthy that somehow dont pay any taxes! Even they probably spend more than that to the tax lawyers and accountants to shelter their income from the taxman! That's RobThink. What do you think?