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Originally Posted by madsenj37
I have had this thread in the back of my mind for a while now. I want a flat tax where every dollar over $13,000 is taxed flately. And for each dependent you support, you get an additional $13,000. Adjusted for inflation when necessary. If you make $40,000 and support only yourself, then $27,000 would be taxed by the agreed upon flat percentage, say 18%. If you make $40,000 and have a spouse who doesn't work, you get taxed 18% on $14,000. If you have a spouse and child you support on $40,000, you get taxed 18% on $1,000. I think this is a very fair system. I would also not allow for any other tax deductions, unless there was the libertarian idea of a tax free medical account. Businesses would also be taxed by 18% on all economic profit they make (taxed after all their expenses are paid). This way money is not taxed twice.
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Your method seems to be a compromise type solution. I think one weakness is that there are people who would pay no taxes. I think everyone, no matter how small the amount, make some contribution in taxes to support the government.
It becomes to easy for those who don't pay taxes to come up with more and more ways to spend the tax dollars paid by others. Example if you pay taxes and I don't, I would want more and more services provided by your tax dollars. Not only do I want new schools: I want you to provide my child with breakfast, lunch and dinner; I want my child to have a personal tutor, physiologist, music instructor, personal trainer, and personal security; etc., etc, etc. The point is that if it is "free" I want everything or as much as I can get, if I have to help pay I will be reasonable.
People are generally greedy, the worst thing you can do is to give things away. A good tax system has everyone making some form of contribution or sacrifice for governmental services.