Since higher tax rates on the Wealthy encourage tax avoidance would'nt a Flat Tax be more Progressive in a way?

Question

Since higher tax rates on the Wealthy encourage tax avoidance would'nt a Flat Tax be more Progressive in a way since the Wealthy would have more of a reason to want to pay taxes with a lower tax rate should'nt Democrats/Liberals be happy with this ?

April 1996
The Reagan Tax Cuts: Lessons for Tax Reform

http://www.house.gov/jec/fiscal/tx-g...t/reagtxct.htm

Answer 1

There is a saying among the rich - "That law is not for me. That law is for the little people."



This is something that has actually been said by a variety of famous spenders. The point of me quoting it is that, at a certain level of privilege, you start to think you can get away with anything.



So, no. Lowering taxes won't make the rich one bit more likely to actually pay them. A flat tax only hurts the poorest people. The rich will still have accountants and lawyers to get them out of paying anything.



And by the way, I can figure out a way out of a luxury expense tax right now. If I was rich, and they passed a tax on luxury purchases, I would find a way to LEASE everything I wanted to have. No purchase, no tax.



The problem is that the loopholes are not accidents. They were put there, on purpose, so that rich people don't have to pay. We need to get money out of politics so we can write laws that mean what we want them to mean.

Answer 2

A flat tax would be a great step in the right direction. The Fair Tax would be even better.



1 - You choose when to pay taxes based on your purchases of luxury items. There is a requirement in the plan that everyone receives a "rebate" check for necessities (based on the minimum necessities - not based on actual purchases).



2 - Visitors to our country would pay this tax every time they bought something. They would help carry our burden.



3 - EVERYONE would have to pay including illegals and those who work under the table/off the books such as drug dealers and day laborers.



4 - No more billion dollar industry in tax filing. All of the money that people and businesses spend on filing their taxes could be put to either lowering the cost of their products and services, paying their workers more, or building their business.



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Answer 3

The very wealthy and massive companies love the tax loop holes that are presented with our classic tax structure. A flat tax might want to be an outstanding pass yet will not in any respect ensue. undergo in concepts what number of human beings might want to be unexpectedly unemployed in our authorities (i.e. treasury, irs, etc.). interior the non-public sector many more advantageous economic correct jobs might want to also be eradicated. All politicians fairly ones operating for president like to recent the flat tax suggestion to have the electorate eyes on them. truth is that Washington is way larger than anybody individual. it's going to not in any respect ensue in our lifetime.

Answer 4

no