Originally Posted by brewmenn
3. If low taxes on the wealthy brings prosperity for all, why isn't our economy going gangbusters right now? Taxes, especially on the wealthy, are near historic lows right now. Where is the prosperity? If high taxes in the wealthy is a "job killer" why is it that some of the most prosperous times in this country (1950's) also saw some of the highest tax rates?
IMHO, a successful flat tax wouldn't be flat at all:
1) define a poverty line and exempt those below it;
2) define a graduated tax rate between a income band above poverty and below $nn,nnn earnings;
3) flat tax rate on everyone above that "magic $nn,nnn number";
4) eliminate ALL tax breaks and loopholes for *EVERYBODY* above poverty level.
I think this would provide a significant increase in tax revenue for several reasons:
1) The IRS could be greatly reduced in size if there were *NOTHING* to audit;
2) Removal of loopholes to keep wealthy folks that can afford the best accountants from cheating the system.
I think that's why the graduated tax laws are currently not working - poorer folks can't afford to take advantage of some of the tax breaks (i.e. mortgage interest, property taxes, deferred 401K savings) and pay a dis-proportionally large amount of earnings as taxation.
Everybody to file a 1040EZ and couches of the rich be fcuked.