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With the discussions about the Republican Party nominations and Herman Cain's 9-9-9 plan, I was wondering what everyone's opinion is of Perry's flat tax plan.
In essence he wants to allow taxpayers to choose between one of two systems: the current tax code, or a flat 20% tax, allowing you to choose the plan that is cheaper for you, or if you have trouble understanding the current tax code, an easier way to file.
http://online.wsj.com/article/SB10001424052970204777904576651330270547222.html?mod=WSJ_hpp_RIGHTTopCarousel_1
http://www.politico.com/news/stories/1011/66761.html
Here is a short selection from the above link:
The plan starts with giving Americans a choice between a new, flat tax rate of 20% or their current income tax rate. The new flat tax preserves mortgage interest, charitable and state and local tax exemptions for families earning less than $500,000 annually, and it increases the standard deduction to $12,500 for individuals and dependents.
This simple 20% flat tax will allow Americans to file their taxes on a postcard, saving up to $483 billion in compliance costs. By eliminating the dozens of carve-outs that make the current code so incomprehensible, we will renew incentives for entrepreneurial risk-taking and investment that creates jobs, inspires Americans to work hard and forms the foundation of a strong economy. My plan also abolishes the death tax once and for all, providing needed certainty to American family farms and small businesses. …
Continue Reading
Cut, Balance and Grow also gives younger workers the option to own their Social Security contributions through personal retirement accounts that Washington politicians can never raid. Because young workers will own their contributions, they will be free to seek a market rate of return if they choose, and to leave their retirement savings to their dependents when they die.
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Looks interesting, I like it much more than 9-9-9 because I hate the idea of having a federal sales tax.
It also seems to fix a lot of the problems of the present tax code without being overbearing with change that would hurt businesses.
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On October 25 2011 11:48 Saryph wrote:With the discussions about the Republican Party nominations and Herman Cain's 9-9-9 plan, I was wondering what everyone's opinion is of Perry's flat tax plan. In essence he wants to allow taxpayers to choose between one of two systems: the current tax code, or a flat 20% tax, allowing you to choose the plan that is cheaper for you, or if you have trouble understanding the current tax code, an easier way to file. http://online.wsj.com/article/SB10001424052970204777904576651330270547222.html?mod=WSJ_hpp_RIGHTTopCarousel_1http://www.politico.com/news/stories/1011/66761.htmlHere is a short selection from the above link: The plan starts with giving Americans a choice between a new, flat tax rate of 20% or their current income tax rate. The new flat tax preserves mortgage interest, charitable and state and local tax exemptions for families earning less than $500,000 annually, and it increases the standard deduction to $12,500 for individuals and dependents.
This simple 20% flat tax will allow Americans to file their taxes on a postcard, saving up to $483 billion in compliance costs. By eliminating the dozens of carve-outs that make the current code so incomprehensible, we will renew incentives for entrepreneurial risk-taking and investment that creates jobs, inspires Americans to work hard and forms the foundation of a strong economy. My plan also abolishes the death tax once and for all, providing needed certainty to American family farms and small businesses. …
Continue Reading
Cut, Balance and Grow also gives younger workers the option to own their Social Security contributions through personal retirement accounts that Washington politicians can never raid. Because young workers will own their contributions, they will be free to seek a market rate of return if they choose, and to leave their retirement savings to their dependents when they die.
I like the sound of it. Now someone come in and tell me why it's completely fucked.
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On October 25 2011 11:55 Yergidy wrote:
Looks interesting, I like it much more than 9-9-9 because I hate the idea of having a federal sales tax.
Yea paying a state sales tax of 9% when I'm already paying a city tax of 8.75% definitly doesn't sound like a good time.
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Breaking News: Rick Perry, Unlikely to Be Nominated Has Announced Free MuthaTrucking Rainbows and Unicorns!
You Get a Ron Paul, You get a Ron Paul, EVERYONE GETS A RON PAUL!
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I like the idea of having options, but what this means is people paying over 20% will take this plan while leaving everyone else to pay a larger share.
Also, on a unrelated note, due to a tax loophole my parents are recieving 95K back from the government this year. They made 85K. The IRS is auditing them to hell and back in case they gamed the system (They didn't)
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i swear americans live on another planet sometimes. the usa is going broke because of its ridiculously low taxes. 3rd lowest in western world. you dont need a tax cut, and unless you really hate people with low income you dont need a federal sales tax or any kind of flat tax.
sometimes complex problems and systems don't have a simple answer, and a tax code you pulled out of your ass on a whim will not help your finacial woes. if there are problems with the current system fix the problems, close the loopholes, force republicans to cooperate with the us govt and president for the good of the country, at least once.
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On October 25 2011 12:02 McFeser wrote:
I like the idea of having options, but what this means is people paying over 20% will take this plan while leaving everyone else to pay a larger share.
Also, on a unrelated note, due to a tax loophole my parents are recieving 95K back from the government this year. They made 85K. The IRS is auditing them to hell and back in case they gamed the system (They didn't)
where can i find out more about these tax loopholes?
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On October 25 2011 12:02 McFeser wrote:
I like the idea of having options, but what this means is people paying over 20% will take this plan while leaving everyone else to pay a larger share.
Also, on a unrelated note, due to a tax loophole my parents are recieving 95K back from the government this year. They made 85K. The IRS is auditing them to hell and back in case they gamed the system (They didn't)
How is that possible?
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In essence he wants to allow taxpayers to choose between one of two systems: the current tax code, or a flat 20% tax
+ Show Spoiler +
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the fact that you can choose the cheaper option implies that taxes will only be lowered to those who can do math? not sure lol
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Looks really nice, my family makes too much that they have to pay ridiculous taxes because it hasn't been scaled down since the '70s or w/e. Would really like this so we can either get out of our tax bracket or pay less taxes.
But then again I could be understanding this completely wrong...
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On October 25 2011 12:03 jeremysaint wrote:
i swear americans live on another planet sometimes. the usa is going broke because of its ridiculously low taxes. 3rd lowest in western world. you dont need a tax cut, and unless you really hate people with low income you dont need a federal sales tax or any kind of flat tax.
sometimes complex problems and systems don't have a simple answer, and a tax code you pulled out of your ass on a whim will not help your finacial woes. if there are problems with the current system fix the problems, close the loopholes, force republicans to cooperate with the us govt and president for the good of the country, at least once.
![[image loading]](http://knowyourmeme.com/system/icons/554/original/facepalm.jpg?1248715065)
Lose the federal spending limit and drop the choice between the two tax options and it could be sound.
Not bad Perry, buy whoever thought of it a beer and a promotion.
User was warned for this post
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Different from what I thought it would be when I read the title, but honestly, how is this going to help? It seems like everyone paying less than 20% will just stick with the current system and everyone paying more will switch to the flat tax and get a tax cut. And deficit will increase yet again.
Something has to be done about the tax code. It is unnecessarily convoluted, highly discriminatory, and full of loopholes. Designed to be full of loopholes.
But honestly, as much as I hate taxes, as much as how I think a flat tax would force fairness, it simply isn't practical. A progressive tax does ultimately make more sense.
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let's see.. some countries with a flat tax system: bulgaria, albania, kazakhstan, iraq, hungary, kyrgyzstan, russia, ukraine
countries with a progressive tax system: most of western europe and scandinavia?
i think anyone on earth who knows about the US tax code would agree that it needs simplified, but a flat tax seems like it would do nothing but maintain income disparities. eliminate tax shelters and follow finland's tax bracketing, imo.
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On October 25 2011 12:03 jeremysaint wrote:
i swear americans live on another planet sometimes. the usa is going broke because of its ridiculously low taxes. 3rd lowest in western world. you dont need a tax cut, and unless you really hate people with low income you dont need a federal sales tax or any kind of flat tax.
sometimes complex problems and systems don't have a simple answer, and a tax code you pulled out of your ass on a whim will not help your finacial woes. if there are problems with the current system fix the problems, close the loopholes, force republicans to cooperate with the us govt and president for the good of the country, at least once.
That is your opinion. My opinion is that taking more money from businesses, big or small, reduces business expansion and hiring which in turn reduces overall tax revenue because when taxes are raised on businesses the customer suffers does because businesses HAVE to meet overhead or they can't function so they raise prices to keep their profit. Raising taxes does nothing but raise costs for everyone. While lower taxes gives businesses more money for expansion and hiring people and thus yields a higher return to the government in taxes.
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On October 25 2011 12:03 jeremysaint wrote:
i swear americans live on another planet sometimes. the usa is going broke because of its ridiculously low taxes. 3rd lowest in western world. you dont need a tax cut, and unless you really hate people with low income you dont need a federal sales tax or any kind of flat tax.
No, we're going broke because government spending is roughly FOUR TRILLION DOLLARS PER YEAR.
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Some simplification and restructuring of the tax code would be a good thing. The current system is really corrupt, what with exemptions for special interests with enough lobbying power and the loopholes. And it's created a lot of financial and tax service jobs that don't create anything useful in reality. (i.e. people in theory, that could be doing productive work maybe)
But replacing your income tax with 20% (if you want) sounds like just huge tax cut to a lot of rich people, thus reducing tax revenue by a lot. No thanks?
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On October 25 2011 11:56 Risen wrote:Show nested quote +On October 25 2011 11:48 Saryph wrote:With the discussions about the Republican Party nominations and Herman Cain's 9-9-9 plan, I was wondering what everyone's opinion is of Perry's flat tax plan. In essence he wants to allow taxpayers to choose between one of two systems: the current tax code, or a flat 20% tax, allowing you to choose the plan that is cheaper for you, or if you have trouble understanding the current tax code, an easier way to file. http://online.wsj.com/article/SB10001424052970204777904576651330270547222.html?mod=WSJ_hpp_RIGHTTopCarousel_1http://www.politico.com/news/stories/1011/66761.htmlHere is a short selection from the above link: The plan starts with giving Americans a choice between a new, flat tax rate of 20% or their current income tax rate. The new flat tax preserves mortgage interest, charitable and state and local tax exemptions for families earning less than $500,000 annually, and it increases the standard deduction to $12,500 for individuals and dependents.
This simple 20% flat tax will allow Americans to file their taxes on a postcard, saving up to $483 billion in compliance costs. By eliminating the dozens of carve-outs that make the current code so incomprehensible, we will renew incentives for entrepreneurial risk-taking and investment that creates jobs, inspires Americans to work hard and forms the foundation of a strong economy. My plan also abolishes the death tax once and for all, providing needed certainty to American family farms and small businesses. …
Continue Reading
Cut, Balance and Grow also gives younger workers the option to own their Social Security contributions through personal retirement accounts that Washington politicians can never raid. Because young workers will own their contributions, they will be free to seek a market rate of return if they choose, and to leave their retirement savings to their dependents when they die.
I like the sound of it. Now someone come in and tell me why it's completely fucked.
Just off a cursory glance, it probably shifts the majority of the tax burden to people making between $50k and $500k. If it fails to address the problem with capital gains tax, it's just going to give the top% a more solid seating where they are now.
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On October 25 2011 12:02 McFeser wrote:
I like the idea of having options, but what this means is people paying over 20% will take this plan while leaving everyone else to pay a larger share.
Also, on a unrelated note, due to a tax loophole my parents are recieving 95K back from the government this year. They made 85K. The IRS is auditing them to hell and back in case they gamed the system (They didn't)
How does this even make sense.
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EPT![[image loading]](http://www.snapdrive.net/files/522046/Monopoly/Income%20Tax%20Pay%2010%25%20or%20$200.Gif)
