Kooky_LukeyRand's plan would help small businesses, their tax would go from ~39% to 14.5. His plan would also not tax a family who makes $50,000 a year or under that.
And out of curiosity what would be your plans then to fix this?
I would like to see a tax on the .1 and higher percent on their stocks and bonds. That's where they make their income, not from wages. For example Mark Zuckerberg's salary is $1. Have no one making under $50k be taxed and do budget cuts in social security medicare etc.
Okay first of all, 39% is only for companies that profit more than 100,000. So sorta. The small businesses that are getting taxed at that rate are by no means struggling. However I do agree that 39% is too high for that level. 14.5% is too low. 14.5% on 1,000,000 is WAY too low, 14.5% on 100,000,000 is criminal.
Cuts to social security? Medicare? Fuck off, Social Security and Medicare are some of the greatest accomplishments of the United States. When social security was implemented, 50% of seniors lived in poverty. Today we are at 10%. Social Security is one of our greatest successes and something we as Americans should be very proud of.
Social Security is paid for by the payroll tax. It has not added a nickel to our deficit. There should be NO cap to the payroll tax for social security, if you raised the cap to 250,000 from where it is now, social security would be solvent for the next 75 years.
Let me make this very clear, what the flat tax is asking you to do, is not give you a taxbreak, but to give a taxbreak to those who are already successful and wealthy, all the while cutting drastically programs designed to help the disadvantaged. Cutting billions of dollars out of our tax base, and driving up this massive deficit which already exists.
Maybe with very progressive regulations on minimum wages, tax evasion, and other benefits for those in the lower income brackets in regard to housing and healthcare, a flat tax could work, but we will not see that from a rand administration.