|flat tax is impossible to support because all it means is a baseline, floor for taxation with the temptation to add more taxes.
Posted: 10/13/2012 8:46:21 PM
Its like the education system down here...Arizona has cut funding to education more than any other state, like 20% plus, and it was horrible even before the cuts..anyhoo..when the recession happened and property values dropped, budgets got cut etc, citizens a few yrs ago supported a prop to do a 3 yr 1% increase to sales tax for education..Of course it passed and was approved.
So in the 3 yrs this has been in effect the money raised (close to 1B) has gone to education..what has the government done? In a sense they stole that ear marked money by cutting MORE than the 1B in education funding because they knew that the sales tax was there and they could cut.
So the point is I dont like the idea of a flat tax because it would not be the only tax we would have, it just means there is a floor set that more taxation would be built on top of that floor.
No thanks on a flat tax, unless ALL deductions were cut at the median income and phased out at say the 125k mark..all of them, ZERO deductions for 125k plus income. Of course that would just create a business for loopholes to be found about how to manipulate taxable income and get around the flat tax.