I haven't had a chance to completely read these articles yet, but I wanted to post them to get any feedback. We've had some recent discussion about the H.R. 2525 Bill being brought forward by Rep. John Linder of Georgia. There might be some issues about the cost of goods sold for business, but there also might be a provision for a rebate for businesses buying raw materials.
Both of these come from The Economist, and for the time being they are available to the public. Do you think America is ready for a Flat/Fair tax? Check out the articles and let us know what you think.
The Case for Flat Taxes
The Burden of Complexity
1 comment:
Great post, Corey. Welcome aboard. We hope to hear from you often.
Isn't it true that deductions themselves, are in fact a way for the government to be a third-party contributor to charities? In a way they are giving up income they would have originally received to the charity. It isn't as if the charity returns something to the donor, is it?
Using your example with the $50k wages, couldn't you argue that because the money is not being spent on yourself, that the tax would actually be ($9k + $5k) = ($14k)/$50k (28%)? An unintended consequence of a flat tax might be a decrease in charitable giving. Or perhaps not.
My math might be mixed up, but I'd like to hear your comments on this, if you have time.
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