On Sat, 15 Dec 2007 21:08:49 GMT, "Edwin Pawlowski"
wrote:


"Lew Hodgett" wrote in message
...

"Dave In Houston"wrote:

Bring on the Flat Tax and maybe we can put this argument to bed.

Probably the most inequitable method of taxation of all.

Low income people must spend the highest percentage of their income to
survive, while the more affluent require a smaller percentage of their
income to survive.

The result:

If a flat tax were imposed, the low income memembers of society carry the
heaviest tax burden.

Lew


Not completely true. The flat tax proposals usually have an exemption for
the lowest wage earners and even steps for others. What is eliminated is
all deductions. Why it won't pass is simple. You no longer need tax
lawyers and accountants. You won't read about Joe the mailman paying more
taxes than the CEO of a billion dollar corporation with a staff of
accountants.


Flat tax is something like
Up to $25,000 no tax
25001 to 75,000 7%
75001 to 175,000 9%
175.001 to whatever etc.

No mortgage deductions, no oil drilling credits, offshore assets, no reason
to pay a tax accountant.

So I assume in this world there would be no deduction for wages paid
to employees, no deduction for the purchase price of items you then
sell, no deduction for your factory's utility costs, etc., etc. So the
grocery store that sells $1,000,000 worth of groceries would pay the
same tax as the jewelry stoe that sells $1,000,000 worth of crap, even
though the grocery store had $950,000 in costs while the jeweler had
$500,000 in costs. HMMM, seems wrong.

Oh, now you are saying that there would be deductions for cost of
goods sold, or rent, or utilities, or wages paid.... So just what
deductions were you eliminating for those millionaires??? I don't
think the mortgage interest deduction on your home is the big tax
shelter abuse.

Dave Hall