--- In [email protected], TurquoiseB <[EMAIL PROTECTED]> wrote: > > > > > > I think some reasonable attention could be put on our social > > > > programs without having to resort to charges of socialism. > > > > > > > According to what I've read, Jim, in order to balance the U.S. > > > federal budget, the government would have to raise payroll taxes > > > by 30% and cut all entitlements by 50%. > > > > Or just roll back the gigantic tax cuts for Bush's > > superrich cronies. > > Or, as some economists have pointed out, simply > institute a flat tax of 15% of income, NO deduc- > tions, for all working individuals and all companies > and corporations. NO deductions or exemptions of any > kind for corporations. > > According to their figures (because a great > number of corporations pay no taxes at all as > a result of loopholes and incentives), this plan > would raise nearly double the amount of tax > dollars per year as are raised now, while prov- > iding most people with an effective tax *cut*.
Actually, a flat income tax would make the tax system as a whole regressive, so that the poor would pay a greater percentage of their income in taxes, while the rich would pay a smaller percentage. And the middle class would also suffer if there were no deductions. Plus which, if corporations have to pay more tax, they'll just pass it on to consumers in higher prices, and to their workers in lower wages.
