(10-06-2014 09:26 AM)Machiavelli Wrote: I need to find the article I reead a month ago though that showed what a family that made 30,000 paid in taxes vs. a guy who made a million. The percent of each was insane. I'll find the article. Again, I'll add, nice retort but in the end. The little guy is paying a much higher percentage of his wage than the bigger guy.
Sure... and I can find thousands of families who made $30,000 and had NEGATIVE tax burdens and millionaires who paid the max and STILL gave to charity.
There are always exceptions to 'rules' and that is why having our rule book be as think as it is (some 50,000 pages) is so silly.... and it DOES cause things like this to happen.
If you don't think fairtax would solve this, you don't understand fairtax... or you'd play fast and loose with numbers...
Generally speaking and using simple numbers, assuming a 10% fairtax... the fairtax would give a $3,000 prefund to the family making 30,000 and then charge them $3,000 in taxes. You MIGHT argue that the family is paying $3,000 on $33,000 of income, but the reality is that they are paying nothing on $30,000... because the prefund doesn't exist without the tax, and vice versa. Alternatively, the millionaire who only spent 200,000 would pay $20,000 in tax on his $1mm in income, but he couldn't spend the other 800k and would instead have to use it to create jobs... which if you were trying to make a point you would argue was only a 2% tax rate versus the poor families 9% rate, but that isn't the reality. The definition of 'spending' would really keep the wealthy person from being able to shelter that much income, and at SOME point, they'd still have to pay taxes on it making their REAL rate 10%... meanwhile, the poor family really paid nothing.
The simplest solution is to follow the examples of Europe and combine income taxes WITH what is essentially a consumption tax.