Taxes are necessary. However, I think a tax on income (the profit from OUR hard work) is wrong.
Why?
I'm sure you're familiar with the KISS principal: Keep It Simple Stupid. That's what a consumption or flat tax is. It's straight forward and simple enough for everyone to understand. No loopholes. No tax lawyers. No cheating the system.
I understand your point. Clarity and simplicity are not concepts celebrated by the IRS or DOL.
Fair is what you pay to ride the bus, Decker.
I think defining fairness in the tax arena should be done in terms of ability to pay.
I respectfully disagree that a flat tax is a tax increase on the poor. Everyone pays the same percentage regardless of income or pays a consumption tax on what they buy. The sweet thing about an indirect tax like the consumption tax is that I can choose not to purchase a taxed item and we, the people, control how much money our incompetent government gets their grubby hands on. Now, in respect to a flat tax (and as Mindspin posted earlier) if the flat tax is 10 percent and I make 100k I'm going to pay more in taxes than a person making 10k. In the end those that make more still pay more. There is also no resentment towards the system when you're successful since your percentage doesn't go up like it does now. IMO, the current progressive tax system is unfair and wrong and (IMO) immoral. I would also of course agree to ZERO deductions. No write offs, no tax credits, nada, zilch, squat.
Everyone does their part. Everyone lifts the burden equally (percentage wise). No more politics of envy.
As far as income tax is concerned, the poor pay nothing or 10% taxes. All national sales tax/fair tax proposals I've seen claim at least a 23% rate (which is really 30% and likely a lot higher but that's another story) of taxation. I've seen the magical 'prebates' to the poor but it's never said how they'll be paid for. 30% is a much higher tax than zero percent. (I don't believe that a zero tax burden is good b/c it disenfranchises the poor).
Mindspin's explanation of a flat tax is fine it doesn't show me anything. Everyone already pays the same tax rate at the same tax bracket in our progressive graded tax scale:
2008 Tax Brackets
Tax Rate Single Married Filing Jointly
10% Not over $8,025 Not over $16,050
15% $8,025 - $32,550 $16,050 - $65,100
25% $32,550 - $78,850 $65,100 - $131,450
28% $78,850 - $164,550 $131,450 - $200,300
33% $164,550 - $357,700 $200,300 - $357,700
35% Over $357,700 Over $357,700
The higher tax bracket applies only to the dollars earned in that bracket and not the gross amount. In other words, we do pay the same rates, it's just that as one earns more, he pays more tax.
There is a wisdom in basing a tax system on the ability to pay. You don't have your grandma move your barbells to the attic b/c it's her turn to clean the basement and you don't have the working poor pay the same income tax rate as those making $360,000 a year.
A national sales/consumption tax is a horrible idea for many reasons: a giant black market would spring up over night, Foreign business would prosper b/c people would forgo the US's 23%(30+%) sales tax rate in favor of Canada or Mexico's rate. Here's an insulting website that sums up the facts about a national sales tax very well
http://www.fair-tax.org/NST.html#NeutralThe fair tax #s do not add up.