Cycloptichorn wrote: ... Your 'flat-tax' proposal, of a sort, isn't practical, because it doesn't take into account the vast sums of money that people accumulate over time. There could not be a proportional tax that is fair, from a real purchasing power standpoint.
For example, let's say Joe makes 20k a year.
Joe's rich uncle makes 20 Million a year.
How do you tax this proportionately, and fairly? You cannot do so unless you take a far larger proportion of Joe's Uncle's money. Not that that matters, as Joe's Uncle still has more money than he will ever concievably need, and therefore has no use for the extra other than greed, which there's no reason to support. Cycloptichorn
I define
fair as "having the same rules for everyone."
I define
unfair as "having different rules for different people."
What's the objective? Pay for government services.
What's the
fairest way to pay for government services? Tax everyone according to the same rules.
FOR EXAMPLE:
Rule 1--Taxable income is the difference between gross income and the number of one's dependents times $7,000.
Rule 2--Tax all taxable income at the same rate of 13%.
Let's say Joe and his Uncle each have four dependents including themselves, Joe's gross income is $28,000, and his Uncle's gross income is $28 million.
Joe's taxable income = 28,000 - (4 x 7,000) = $0.00.
Joe's Uncle's taxable income = 28,000,000 - (4 x 7,000) = $27,972,000.
Joe's tax = 0.13 x 0.00 =$0.00.
Joe's Uncle's tax = 0.13 x 27,972,000 = $3,636,360.
Seems fair to me.
Let's do it for Able's gross income of $56,000.
Able's taxable income = 56,000 - (4 x 7,000) = $28,000
Able's tax = 0.13 x 28,000 = $3,640.
I am able to see that is fair too.