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Originally Posted by Fair&Balanced
Ah. there's the rub.
Proposals like the flat tax, Ryan's budget or yours assume they will result in more money coming into the treasury.
But they are based on economic growth assumptions that the incentives will be so great for consumers and businesses to spend and invest that the economy will grow faster and higher than any time in recent history, at rates of 7% or more annually. I think we've only seen a 7% growth rate once in the last 30-40 years.
Reagan's former budget director recently described it as Alice in Wonderland economic assumptions.
Oh and everyone does pay something into the federal treasury, in the form of federal excise taxes (eg gas tax) and payroll taxes (FICA), in which those with wages under $100K pay a higher percentage than those over $100K (since payroll taxes are only on the first $100K).
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Either you believe the very wealthy are paying taxes at 35%+ right now or you don't. If you don't then by eliminating the loopholes the treasury must receive more money. If they are paying 35% I'd like to quit hearing about the very wealthy paying nothing.
Personally, I believe the very wealthy pay significantly less than 35% because they have shelters and loopholes. Therefore, I believe 1% on every dollar up to $X0,000 and 25/35/39?% on every dollar over MUST generate more income than 0%on the first $40-50K and Less than 39 on everything over, regardless of the growth rate of the economy.