Quote:
Originally Posted by jorgelito
Sure, a little fat trimming never hurt anyone. I think it would be good for us too. An audit is in order too. The accounting needs to be....accountable. Military spending is a big piece. Reducing spending is only one element. Smarter, fiscally responsible spending would be better.
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Unless the flat rate is high, you're going to need to cut by slashing and burning to make up for the major redistribution of tax collection. Set it too high and you make your poor even poorer.
And you do realize that most countries that currently use the flat-tax system are former Soviet and socialist republics, right? (Including two of the "-stans".) I haven't checked recently, but the last I've heard, a lot of them aren't doing so hot (still).
I guess what I'm trying to get at is that flat-tax systems are (were) often employed in communist-type systems. In former communist states, they still work because there isn't as much of a disparity between rich and poor.
It wouldn't really work in free-market industrialized nations.