Right Thinking From The Left Coast
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Flat Tax Blues

Some fucking numbnuts writing in my local dogturd scoop is actually arguing that the current tax code shows why a flat tax hurts the poor and helps those eeeeeeevil rich folks.

So what about the “fantastic growth waiting to burst forth”? Has leveling out federal income tax rates produced a cornucopia of financial benefits?

The answer is probably yes — if you’re a millionaire. And probably no — if you’re almost anyone else. Flattened, and thus lower, tax rates have contributed to huge increases in the wealth of the wealthy, but so far most people haven’t seen significant economic improvement.

Then there’s this.

Under Forbes’ largely forgotten flat-tax proposal, taxpayers would have paid 17% in taxes on all income beyond $36,000 a year, excluding pensions and profits from the sale of investments. The system was to be so simple, the candidate said, that most taxpayers would fill out a form the size of a postcard.

No such system was adopted or even seriously considered, but President Bush has achieved something close to the flat-rate structure by cutting tax rates on earned income and particularly on dividends and investment profits.

Aha!  Therein lies the rub.  Under any successful flat tax structure there are few to no deductions of any kind.  What we’ve got today is a tax structure which has been, as the author says, “flattened” in terms of the basic numbers, but which still has ten thousand different ways of gaming the system.  Since the poor, by virtue of their poverty, cannot afford to hire professional tax preparers, these loopholes will be primarily used by the more affluent.

Man, you really have to love the progressive tax to believe the line of bullshit in this article.

Posted by Lee on 04/17/06 at 01:06 PM in Politics • Permalink

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