Quote:
Originally Posted by lookout123
... After that a simple 1% up to $XX,000 and 20/25/30% across the board on every dollar beyond that. 1 form, done and dusted.
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Here's the problem as I see it. The ideology bumps up against reality.
Federal income taxes currently generate about $1.2 trillion in revenue (the rest comes from corporate taxes, payroll taxes, excise taxes, etc) for a $3 trillion budget and your proposal would reduce that revenue significantly and spending cuts would need to be much deeper (not just waste, fraud, redundancies, etc.) than the economy could bear or that the people would likely accept OR the rates would need to be higher than you suggest and middle class taxpayers would be adversely impacted much more than the wealthy.
It will have several other impacts as well.
State income taxes would likely increase to fund essential or beneficial programs that came under the federal knife.
And, by ending the deductions for charitable donations, there would be less incentive to make those donations, particularly among the wealthy, meaning that the charitable sector will also see less revenue and be unable to make up the difference resulting from those deep federal cuts.
Finally, the reason why every industrial economy in the world has a system of progressive taxation is simple and its not as a result of the influence of lobbyists or the taxing authority, but because it is the best system to fund government services and spread the cost so that no one is burdened with taxes beyond their means.