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Forums - General - Why we need a flat tax.

That Guy said:

they theory is more like the trickle down effect.

If a rich guy has more money, he's not going to "give the money away." Rather, with his extra 10 million dollars, he will probably buy some cars and maybe 3 more houses and maybe invest in some stocks and, iono, go to vacation in Hawaii.

If a poor guy has more money, he is also going to buy goods, which will improve the economy.  Your argument goes nowhere.



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Kasz216 said:

Yeah... that's what percentages are for.

Taxing people an exact percentage of what they've worked.  For every 10 hours you work.  We tax you 2 hours etc.

It is fair.

When you tax on what you can afford you ignore the work spent to make that money and the value of what the people who work provide the country. 

That is why it is a flat percentage.  Rather then one way focusing only on total paid (everyone pays 2,000) or the other (Everyone pays based soley on income.)

You have a weird idea that people's income has anything to do with how many hours you work.  Some people work 60 hours a week for $50,000 a year, and some people work a few hours a day and make hundreds of thousands of dollars.

Answer this.  Is it fair for everyone to pay the same tax, where poor people pay $2,000 tax and rich people pay 2,000 tax?



Manus - The poor aren't getting taxed $2000 and the rich aren't getting taxed $2000 because to be 'rich' you have to have more money than the 'poor'.

Technically, the poor could be taxed $0 if they didn't report any income.



Back from the dead, I'm afraid.

HappySqurriel said:

The free market will protect people with valued skills that are in demand, but these tend to be people who are not being "protected" by a progressive tax system anyways. While not all engineers and software developers are high earners for their field, they tend to be in the top 25% of income earners and (generally speaking) pay a proportionate percentage of tax gathered.

Its the bottom 50% that suffer because their skillset is not rare or valued, and when enough people are laid off because of companies cutting costs to recover money to pay increased taxes, the company they work for has a lot of power to adjust their income as they see fit.

Now, when taxes are low enough that companies thrive and unemployment is low the low wage earners have far more power to demand more equatible incomes because the companies cannot operate without their work. The reason a flat tax helps with this is that when 100% of people become aware that they have a stake in the total tax rate there is an increased focus on controlling unnecessary spending.

Your argument is full of logical fallacies and assumptions.

First of all, the tax system has little to nothing to do with people's perception of government spending.  Even so, your argument suggests that poor people will care more about government spending when they are taxed more, and that rich people will care less about government spending because they pay less taxes.  I really dont see how this huge assumption works to validate your argument.

Secondly, you assume that when poor people are taxed more they will become more powerful and able to demand more wages.  That is not true at all, their wages will still be decided by the free market, and labor supply and demand will still be decided by the free market.

Thirdly, you assume that business will be better because rich people pay less taxes and poor people pay more.  Its true that rich people will have more money to spend, but for every extra dollar they get poor people get a dollar less.  Poor people participate in the economy just as much as rich people, and the only difference betweeen ten poor people buying $100 in groceries and a rich person buying a $1000 chair is what type of good was purchased.  If anything, the effect of giving rich people more money and poor people less would be a change in demand of types goods, which would have a negative short-term effect on the economy and no long-term net gain.



mrstickball said:
Manus - The poor aren't getting taxed $2000 and the rich aren't getting taxed $2000 because to be 'rich' you have to have more money than the 'poor'.

Technically, the poor could be taxed $0 if they didn't report any income.

That didnt answer my question:

Is it fair for everyone to pay the same tax, for instance poor people pay $2,000 tax and rich people pay 2,000 tax?



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ManusJustus said:

Is it fair for everyone to pay the same tax, where poor people pay $2,000 tax and rich people pay 2,000 tax?

If you could work it off, yes.

Paying taxes is really just transferring your obligation into something to easily exchanged.

 

We have been talking about collecting that effort, but in reality, it's the application of it that matters.

 

if we took all of government, and figured out what it cost per person, and what the average hourly rate was we were paying for, we could just then bill the people for it.

 

So if it came to 200 hours a person @ $40 an hour, I would be OK with that if you gave people the option to work those 200 hours for the government instead of paying. That would allow the people who put enough effort into there life, for there time to be worth more then 40 hours to just pay it, or those who are less skilled the ability to do the work themselves.

 

This is all hypothetical however, as it would be impossible to achieve, so being we have grown to the point where we can't give you all 200 hours of work, we can say "just go do whatever you do for 200 hours, and pay us".

 

It's less fare, but logistically it's the most fare option.

 

Here is a sad statistic. If you just did that. Assumed everyone over the age of 18 (people who can vote) had to pay equally, the "bill" to each American would be$15,500 for 2010.



ManusJustus said:
That Guy said:

they theory is more like the trickle down effect.

If a rich guy has more money, he's not going to "give the money away." Rather, with his extra 10 million dollars, he will probably buy some cars and maybe 3 more houses and maybe invest in some stocks and, iono, go to vacation in Hawaii.

If a poor guy has more money, he is also going to buy goods, which will improve the economy.  Your argument goes nowhere.

 

yeah where's the poor guy getting money? Probably from his JOB working for the rich guy. If the rich guy had less money, maybe he wouldnt' be living it up in Hawaii and the poor guy would thus be unemployed.

 

And thank you for bringing up the multiplier effect. Yes, in turn, after the poor guy gets a 20 dollar tip from the rich guy, the poor guy can turn around and buy milk and diapers for his kids, and the grocery store gets money, which in turn pays off the grocery store workers and etc. etc.

 



For all the time some of you guys spend arguing about tax rates being raised 2% or 3% you could have made hundreds of thousands of dollars by now.

And isn't it your duty as a citizen to pay taxes? I guess everyone loves to be patriotic until it comes time to actually do something tangible to support your country, like pay your taxes. Some of you act like the government anally rapes you when it does what it has the constitutional authority to do, tax you.



We had two bags of grass, seventy-five pellets of mescaline, five sheets of high-powered blotter acid, a salt shaker half full of cocaine, a whole galaxy of multi-colored uppers, downers, screamers, laughers…Also a quart of tequila, a quart of rum, a case of beer, a pint of raw ether and two dozen amyls.  The only thing that really worried me was the ether.  There is nothing in the world more helpless and irresponsible and depraved than a man in the depths of an ether binge. –Raoul Duke

It is hard to shed anything but crocodile tears over White House speechwriter Patrick Buchanan's tragic analysis of the Nixon debacle. "It's like Sisyphus," he said. "We rolled the rock all the way up the mountain...and it rolled right back down on us...."  Neither Sisyphus nor the commander of the Light Brigade nor Pat Buchanan had the time or any real inclination to question what they were doing...a martyr, to the bitter end, to a "flawed" cause and a narrow, atavistic concept of conservative politics that has done more damage to itself and the country in less than six years than its liberal enemies could have done in two or three decades. -Hunter S. Thompson

ManusJustus said:
Kasz216 said:

Yeah... that's what percentages are for.

Taxing people an exact percentage of what they've worked.  For every 10 hours you work.  We tax you 2 hours etc.

It is fair.

When you tax on what you can afford you ignore the work spent to make that money and the value of what the people who work provide the country. 

That is why it is a flat percentage.  Rather then one way focusing only on total paid (everyone pays 2,000) or the other (Everyone pays based soley on income.)

You have a weird idea that people's income has anything to do with how many hours you work.  Some people work 60 hours a week for $50,000 a year, and some people work a few hours a day and make hundreds of thousands of dollars.

Answer this.  Is it fair for everyone to pay the same tax, where poor people pay $2,000 tax and rich people pay 2,000 tax?

With a % tax you are being taxed a % of the hours you work.

Is a everyone pays $2000 system fair?

I guess.  Wouldn't work with how much money the government currently spends though.

 

Now you answer this.  Is it fair for everyone to pay $399 for a PS3.

Or should consumer goods prices be raised and lowered based on your income?

 

Taxes really aren't any different from Cable or any other good or service.

 

What would we think of Sony if they charged some people more for a product and some people less?

 



akuma587 said:
For all the time some of you guys spend arguing about tax rates being raised 2% or 3% you could have made hundreds of thousands of dollars by now.

And isn't it your duty as a citizen to pay taxes? I guess everyone loves to be patriotic until it comes time to actually do something tangible to support your country, like pay your taxes. Some of you act like the government anally rapes you when it does what it has the constitutional authority to do, tax you.

 

That's a silly arguement.  "The government has the ability to do it therefore it's right."