@ETpro I guess I would need to know the real numbers to know where I really stand. I am not saying your numbers aren’t accurate that a flat tax would need to be 30% sounds high to me. Also, I am not talking about getting rid of sales tax altogether, so many variables that can be discussed around this subject. I am not for a very high VAT or sales tax, because I find that to be regressive. In TN there is no state income tax, but there is a state tax on dividends and interest, although very low. And, we have a 9.25% sales tax, even on groceries, I can’t think of anything more regressive than taxing bread.
If we tax only on spending, which I don’t think you are suggesting, but anyway if we tax only on spending the rich make out like bandits. If you make $10 million a year, you probably won’t be spending all of it, but if you make $50K you probably will, so basically 100% of the $50K guys income is taxed, and if the $10m spends $6m, only 60% of his income is taxed.
As a middle class person myself, I have been fortunate enough to have had an investment property that I could depreciate on my taxes and when I sold it only paid capital gains. The money my husband and I have slaved for a regular jobs is taxed much higher. People with more money, are able to afford more tax shelters, I think it isn’t right. The rich get richer. Believe me, even if I was going to get taxed more I would have bought the investment property.
It isn’t all or none for me. I want a combination of taxation, but in a simpler more straight forward form, and I would prefer no one get more hurt than the next guy, but I think it is up for debate who is getting hurt more.
My taxes were pretty straight forward this year, I just did the math for my tax return and I am paying 22% of my gross adjusted income, so that is not incuding what I itemized, which was very low this year, I am barely over the standard deduction. But, according to that article I posted, the info is from the IRS, the guy making $200million is paying about 17%. So it back to your assertion of 30%, is that number simply looking at the fed income tax we collect now, and what % it would have to be to come out even if we had a flat tax? Or, is it to also replace sales tax, and other taxes?
And unrelated, but related, we need to think about how taxes and tariffs work on goods that are imported and exported to get an even playing field in that arena.