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comment by mk
mk  ·  4814 days ago  ·  link  ·    ·  parent  ·  post: Debunking the Bunk
Do wealthier people (like Warren Buffet) pay lower taxes due to capital gains being their primary source of income and not a salary, etc.), yes at this time. However, with a flat tax (and little or no exemptions) you would not have the two tiered structure, so, in our case Warren, would pay the same percentage as me (just a hard working corporate guy).

So say if the flat tax was 28%, Warren would pay 28%, even on income made from investments?





hootsbox  ·  4812 days ago  ·  link  ·  
The way I have studied the flat tax, it is a tax on income including income from "captial gains and dividends". Income would be treated as income period, but it would only be taxed once.

Unlike the current system, a flat tax is simple, fair, and good for growth. Instead of the 893 forms required by the current system,[4] a flat tax would use only two postcard-sized forms: one for labor income and the other for business and capital income. Unlike the current system, which discriminates based on the source, use, and level of income, a flat tax treats all taxpayers equally, fulfilling the "equal justice under law" principle etched above the main entrance to the U.S. Supreme Court building. And unlike the current system, which punishes people for contributing to the nation's wealth, a flat tax would lower marginal tax rates and eliminate the tax bias against saving and investment, thus ensuring better economic performance in a competitive global economy. [4]laborBased on a search of Internal Revenue Service "Forms and Publications" Web site, at www.irs.gov/formspubs/index.html (April 19, 2005).