re: Flat tax

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Ideally, there would be a valued added sales tax, similar to what some European countries have. That way taxes are collected on unreported cash transactions.

In addition, there would remain an income tax with a $300,000 exemption so most people don't have to file. This would prevent the tax system from being regressive.

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GFY with a VAT + income tax.

As written, the National Retail Sales Tax completely replaced the income tax, repeals the 16th amendment, abolishes the IRS AND removes the tax liability on everyone at the poverty line via its prebate system that's paid out to all households.

As I said in a previous thread about it:

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This is the express purpose of the National Retail Sales Tax, which replaces the federal income tax structure to the penny. Retailers already act as tax collection entities for state and local sales tax.

Corporations do not pay corporate income taxes, they collect them. The NRST simply replaces the embedded federal income taxes which are passed down along each step of the supply chain, from manufacturer to wholesaler to distributor to retailer, and ultimately paid by the consumer.

In a NRST scenario, there is no need for the 22% embedded corporate income tax that is already baked into the price you pay at the register. Market forces will drive retail prices down to their rightful place, and the price paid at the register will effectively be the same as it was under the old IRS/income tax model. The major difference being that it's purchased with your whole paycheck, because withholding will have gone away due to obsolescence.

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Here's later in that same thread where I break it down.

We have a VAT tax here. And there are exemptions for food staples, beans, rice, sugar, salt, oil, etc.

Pros, it catches all the illegals, drug dealers, the underground economy in the US it has to be trillions. Its easy for the govt because businesses become your tax collector. It would reduce the IRS by 90%. It would stop all the nonsense tax breaks. It would eliminate having accountants figure out your taxes.

Con for govt, it would eliminate all the favoritism for graft. So govt would never approve it.

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Con for govt, it would eliminate all the favoritism for graft.

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That's why I love it so much.

User name checks out.

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Well, a flat tax is regressive and will disproportionately affect the lower income earners.

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Are you saying that any tax over $0 is regressive?

If so... no shite. So what.

The entire "selling point" of ObamaCare to conservatives was that poor people would pay $40/month or $100/month as opposed to $0/month.

If contributing to the system is wrong...

Flat tax is not bad but the FairTax is the better way.

Fair Tax is only option. National sales tax on all new goods and services. Even the illegals and other criminals will pay it when they make purchases

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VoxDawg

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You’re just regurgitating what you read on a flat tax website. Put some thought into it.

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The term regressive tax refers to a tax that is applied uniformly regardless of income.

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Wrong.

Replace income tax with consumption tax. End double taxation of corporate dividends (implied by no income tax). Increase penalties for offshore tax evasion.