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Flat Income Tax or Current Income Tax

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US FEDERAL INCOME TAX ~ Flat Income Tax or Current Income Tax

Cast you vote and share you opinions on Flat Income Tax or the current Income Tax.

Each year I spend weeks gathering receipts, W-2's, 1099's, bank statements, etc. in order to file our annual Federal Income tax return.

What Fun Right!

Each year I ask the burning question: "Is there an easier way?"

Each year I ask the burning question: "Is there a faster way?"

Each year I ask the burning question: "Is there a more equitable way?"

Each year the voice in my head suggests an answer: "How about a simple Flat Income Tax"

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A Flat Income Tax ~ The Definition
Progressive Tax ~ Definition
The Process of Filing a 1040 Income Tax Return
Now I Ask You The Burning Question, What Do You Think?
Articles written about Flat Income Tax
DISAGREE with Flat Income Tax

A Flat Income Tax ~ The Definition

"A flat tax (short for flat rate tax) is a tax system with a constant tax rate. Usually the term flat tax refers to household income (and sometimes corporate profits) being taxed at one marginal rate, in contrast with progressive taxes that vary according to parameters such as income or usage levels. Flat taxes offer simplicity in the tax code, which has been reported to increase compliance and decrease administration costs." ~ Wikipedia

Image from: money.howstuffworks.com

Progressive Tax ~ Definition

The Current US Income Tax

"A progressive tax is a tax by which the tax rate increases as the taxable base amount increases. "Progressive" describes a distribution effect on income or expenditure, referring to the way the rate progresses from low to high, where the average tax rate is less than the marginal tax rate. It can be applied to individual taxes or to a tax system as a whole; a year, multi-year, or lifetime. Progressive taxes attempt to reduce the tax incidence of people with a lower ability-to-pay, as they shift the incidence increasingly to those with a higher ability-to-pay." ~ Wikipedia

Image from: mises.org

The Process of Filing a 1040 Income Tax Return

Here is where the Real Fun Begins!

In an attempt to decrease our tax burden, we spend days, even weeks, trying to find the elusive tax deductions.

Dependents

Mortgage Interest

Medical & Dental Expenses

Contributions

State Sales Tax

Property Tax

Business Expenses

Education Expenses

Casualty, Disaster, and Theft Losses

As the list grows shorter each year, we ask ourselves "should we have had a child last year?"

Then when I look at the actual form, I wonder if I need a lawyer, a tax specialist, a CPA or all of the above! Wouldn't it just be easier to send them a percentage of my Gross Income and get back to living?

Now I Ask You The Burning Question, What Do You Think?

Flat Income Tax or Current Income Tax

I choose Flat Income Tax ~ Please tell us why

jim kirby florida says:

the estimated savings with the shutdown of current i.r.s. is an estmated 50,000,000.00. i believe that is a low assesment. theres a lot of things that go along with that shutdown i.e utilities, rent, insurance etc. flat tax across the board at an even % would be hard but set in place an escalating schedule and live by it. a solid even ## for medicade would work, as i wouldnt matter amount of income, set it 1% higher than it would take to cover for future growth. anyone who earns pays a certain % and thats that.no more filing taxes PERIOD ! just my opinion jim

nichevalue says:

I lean more to the flat tax system with a income cutoff threshold. Meaning those making less than the threshold don't pay the tax. Having said that, I don't think any change to the tax code will be beneficial until the government learns to spend less than it collects.

SoyCandleLover-Maker says:

Haven't looked into it too much, so forgive me if this is inane. How about flat tax with automatic withholding based on salary? Just a thought. :D

puzzlemaker says:

I can feel my blood pumping with this question. SHOUTING: FLAT TAX! Everyone would pay the same percentage. As it is people who earn more are penalized. Yes, penalized for their success. We are self employed too and the end of the year paperwork fiasco is ridiculous. It's all a matter of government control. They don't want to let go and let it happen. Thing is they would collect WAY more if they did because they would catch everyone who falls through the cracks normally.

GladlyMom says:

I wonder who came up with the idea of income tax? It seems like confiscation of earned income to me! I did some research on taxation once and learned that a professor from Iowa State Univ. came up with brilliant idea of withholding taxes from paychecks in 1916 or somewhere in that vicinity. Have you ever looked at your paycheck stub? Don't you think there would be a huge tax revolt if we all had to sit down and write a check to the IRS for that amount of money? This is precisely why the withholding thing came about - no one was paying their income taxes.
Don't get me started!!!!
I would prefer flat tax to progressive, but actually vote for no income tax at all.

lakern26 says:

I do hate tax time! One of my husband's job is as a part-time musician and, every year, we're on pins and needles wondering how much they are going to take of his "self-employed" income. I spend weeks gathering all of those receipts and preparing a field expense. There has got to be a better way! Maybe it's the flat tax, who knows?

Heather426 says:

It would be much easier and cheaper to administer, and we could just let all those IRS bullies go find another job. It costs a lot of money to go thru all the files and returns and if we had a flat tax, it would just take a computer program and a few people to check the returns. Plus, then everyone would be paying a share of the costs of infrastructure, like roads and bridges,etc.
And the really rich would not be able to use loopholes to pay no tax at all.
And actually, I prefer no income tax at all! I think we should just have a sales tax. That collects from people who spend money, and the more you spend, the more you pay. That way the really poor are not taxed unfairly in proportion to how much they have. And I also favor Limited Government which would cut the costs that the taxes are funding, but that's another topic.

jptanabe says:

Actually I don't know if the Flat Income Tax would really work, but it's got to be better than the confusion we have now! As long as they set the rate low enough and gave a decent deduction it might be good. Simplification leading to increased compliance and decreased administration costs sounds good too.

I choose Current Income Tax ~ Please tell us why

heliumsocket says:

I'm in favor of the current progressive system, but with reform to introduce more brackets for the wealthier and to eliminate huge loopholes in the code. I wrote a lens about it, check it out!

wmnorton says:

The current tax is the only fair way to tax. Warren Buffet and I pay zero on the $5800 we make, we pay 10% on the next $8500, we pay 15% on the next $26000 we make, we pay 25% on the next $49100, no wait Warren Buffet has a flat tax for all his dividends. So I end up paying a higher rate than Warren Buffet, that's not fair, so there is no answer that is correct.

i.am.me says:

i say current because what good does it do to the rest of society if we take the same amount from the poor and rich....the way i see it that only helps out the higher class people

TaxRebate says:

I would like to see a study which shows the difference in tax revenue from a flat tax system Vs the current system. I hear arguments both ways but I think overall the current income tax system is fairer.

sandyspider says:

I think a flat tax only benefits those in a high income bracket.

Superwife says:

while it might be easier to just have a flat tax, I do appreciate the opportunity to write off deductions my business has. I'll do the work if it saves me moolah!