Quote:
Originally Posted by aceventura3
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.
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I do know their is a weakness to my system. However, our current system allows for people to get away with not paying taxes, and it is not as fair. Our current system estimates 20-25% will cheat or not pay all they 'owe.'
I want to revise my system a little. Dependancy rates would be regressive. One dependant would get about an additional $10,000 tax free, instead of $13,000. A second dependant would be an additional $8,000 or so. So a family of three would get $31,000 of their income to be left un-taxed instead of $36,000.
As for a VAT or sales tax, I like it because people only pay when they spend, hopefully encouraging saving, but unfortunately low income households are punished because it is harder for them to save. One solution might be to not tax necessity items like food.