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McCook Gazette
Letter to the Editor

A true 'flat tax'?

Wednesday, December 2, 2015

Dear Editor,

Considering the simple definition of a "flat tax" - a single rate with no deductions - many proposals being bandied about by 2016 presidential hopefuls are not truly "flat."

The 10 percent "tithe" proposed by one hopeful is, but, without significant -- really significant -- spending cuts, 10 percent won't generate sufficient tax revenues to be effective. That hopeful has since received a partial economic-reawakening and upped his proposal to 15 percent. Unfortunately, 15 percent will also be ineffective.

A true flat-tax rate would have to be in the range of 21-25 percent to be effective.

And, a true flat tax would result in a substantial tax increase for the low and middle classes. For example, a couple with combined earnings of $50,000 now pay about $2,500. Assuming a 15 percent flat tax, that couple would pay $7,500 ... three times more.

The pretend "flat tax" proposals -- that do have deductions -- would result in a plan similar to the IRS plan we are currently burdened with and, as most Americans agree, must be eliminated.

With a consumption tax, however, you don't pay based on what you earn. Instead you are levied on what you spend, and you are in complete control of how much that is.

With a FAIRtax, you also receive a monthly refund of the taxes you have already paid in connection with the purchase of essential items.

Another big advantage of FAIRtax is that it eliminates the intrusive IRS. There are many other major advantages too. FAIRtax.org clearly explains what they are.

Thank you,

Joe O'Hara

Ocala, Florida

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  • ... and, not only will a true flat tax of 15% result in a substantial tax increase for the middle class (as explained in my letter above), it will provide a large tax decrease for much of the upper class. Individuals with an Adjusted Gross Income (AGI) of $500,000, on average, pay $128,000. Using a true flat tax of 15%, the tax burden would be only $75,000.

    In addition to a flat-tax imposing tax increases on the middle and a portion of the upper classes, their are about 46 million people in the USA who are classified as poor: some are legitimately poor, but many are illegitimate since they only pretend too be "poor".

    A true flat tax of 15% penalizes legitimately poor, such as: the physically-disabled, the mentally-challenged, etc. For example, a family of four (two adults, two children) with a household income of $24,000 - which is just below the poverty level, will be forced to pay $3,600 in tax. That's a whole lot of milk, eggs and school supplies.

    With a FAIRtax, however, that isn't allowed to happen. Even the convoluted IRS progressive tax system - the system FAIRtax will replace - provides credits to the poor that zero-out any tax they may owe.

    The illegitimately "poor" - those who work off-the-books, for example - will keep right on working-off-the-books under a 15% flat-tax system, but they will pay only on the earnings they report - if in fact they report any. FAIRtax prevents that from happening.

    Protecting the legitimately poor is the American way; it's the

    -- Posted by Joe O'Hara on Fri, Dec 4, 2015, at 7:07 PM

  • O'Hara, in addition to not paying taxes on wages, there are no FICA taxes (15.3%)and there would be no tax penalty on the profits earned overseas (est. to be in the trillions)

    With no taxes on investments, global investment capital would flood into the U.S. looking for tax free investment opportunities, all that cash could fund tens of thousands of new business start-ups and millions of business expansions once the fed had their hand out of the pockets of business.

    Imagine the macro-economic benefits of lowering the "Cost" of doing business once the compliance, documentation and regulatory expenses are eliminated from simply FILING taxes for both individuals and business! That money can be free to invest in expansion, development and NEW HIRING! As demand for labor increases so should wages increase. Support the candidates that support passage of HR-25/S-155, the FAIRtax bill!

    -- Posted by HR-25/S-155 on Fri, Dec 18, 2015, at 3:10 PM

  • Yes, and we could have little pink unicorns come to the doorstep with little striped packs on their backs to pick up the fair(??)tax and deliver it to the government!

    -- Posted by allstar69 on Sat, Dec 19, 2015, at 1:37 AM
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