Speaking of taxes........

[Clodfobble]

Originally Posted by Kitsune's link

Like other execs at the search giant, the bulk of the Schmidt's compensation comes from his stock options. As of March 1, Schmidt owned more than 10.7 million Google shares, worth more than $5 billion at Wednesday's closing price of $471.02. Similarly, cofounders Sergey Brin and Larry Page received $1 salaries but each owns stock worth around $13.5 billion.

But if they are selling a handful of stock options here and there for day-to-day cash, that money is still taxed as capital gains. Don't most flat-tax plans still count capital gains as income?

The problem is that "flat tax" and "a simplified tax system" do not have to go hand-in-hand at all. Hyoi's graphic of the postcard-sized tax form could easily include staggered tax rates from 0% to 40% depending on the income bracket just by adding a couple lines. But a system that simplified is unrealistic anyway--just as one example, how in the world would the self-employed prove their net versus gross income?

[Kitsune]

Originally Posted by Clodfobble

But if they are selling a handful of stock options here and there for day-to-day cash, that money is still taxed as capital gains. Don't most flat-tax plans still count capital gains as income?

I've heard both versions suggested, but I'd guess you'd have to count any and all income. This, to me, means forms quite a bit bigger than a postcard.

Originally Posted by Clodfobble

The problem is that "flat tax" and "a simplified tax system" do not have to go hand-in-hand at all.

I, personally, don't want a simplified tax system. Deductions and the sliding scale go in my favor and will continue to do so as my life progresses, property is purchased, etc. The benefits of the current system are too great, especially for people with low incomes and those getting their lives started.

[Kitsune]

Originally Posted by Clodfobble

But if they are selling a handful of stock options here and there for day-to-day cash, that money is still taxed as capital gains. Don't most flat-tax plans still count capital gains as income?

Correction: Happy Monkey pointed it out -- this is a tax on "wages". Stock options, dividends, etc, are absolutely not wages. This is massively flawed.