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Response to kelliekat44 (Original post)

Mon Feb 18, 2013, 12:13 PM

2. The point of a flat tax is that it isn't graduated.

It wouldn't be "means tested so that the flat rate is higher for the wealthy than for the middle class and working poor."

It's 17% (or whatever) off the top of everyone's income.

Some proponents do propose that the first $20k (or whatever) be exempted, so to that extent it resembles a graduated tax.

However, the problem always comes in the form of defining "income."

If I buy 1000 widgets for $10K total & sell them for $20k, my gross intake is $20k, but my gain is only $10K, so surely I should only be taxed on the $10K

If I have to buy a truck to haul the widgets around, the payment will come off my profits, but how should I amortize it?

If I take someone to lunch in an effort to persuade her to buy my widgets, is that a business deduction?

Etc.

Pretty soon you're back in the same mess, but with a lower nominal rate on the rich & a higher real rate on the poor.

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Replies to this discussion thread
Arrow 13 replies Author Time Post
kelliekat44 Feb 2013 OP
kelliekat44 Feb 2013 #1
LineReply The point of a flat tax is that it isn't graduated.
Jackpine Radical Feb 2013 #2
Ligyron Feb 2013 #7
appacom Feb 2013 #9
sadbear Feb 2013 #3
kelliekat44 Feb 2013 #4
Dawson Leery Feb 2013 #5
Tommy_Carcetti Feb 2013 #6
appacom Feb 2013 #10
sadbear Feb 2013 #11
Dawson Leery Feb 2013 #13
Tom Ripley Feb 2013 #8
Orrex Feb 2013 #12
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