The right wing always wants more regressive taxes like the Flat Tax, the misnamed Fair Tax, National Sales Tax or Herman Cain's 9,9,9 plan, because they all shift the burden further onto the middle class and give the millionaires huge cuts in their already low tax burden.
All of these plans are similar to Cain's plan which would raise taxes to 84% of the nation while cutting the taxes of millionaires in half.
http://money.cnn.com/2011/10/18/news/eco...Yes people want a simpler tax, but they also think the rich should pay their fair share. If people have 90% of the money in the country, shouldn't they pay 90% of the taxes in the country? As things are now millionaires pay a lower tax rate than their secretaries. The right wants to make that inequity much much worse!
http://www.nytimes.com/2011/08/20/busine...People think that there should be just compensation for a hard day's work. That is what makes civilization and the free market work. But the rich have found ways to circumvent that. They can pay people to do their work and thinking, yet give them most of the money. Wall street can use super fast computers and predictive algorithms to predict when stocks will go up and down so they can buy stocks low and fifteen minutes later sell them high and pocket millions for a few minutes "work". The rich and powerful can "Leverage" other people's money to make hostile takeovers of good productive companies. Then they fire the workers, dismantle the machinery, sell it overseas, and make millions, while destroying our economic base.
Adam Smith would roll over in his grave! The American dream is dead. A hard worker is no longer guaranteed success. The poor work hard at two jobs and still have trouble paying the rent. It takes money to make money. There is no economic justice. There is no fairness in business just war. The rich are getting much richer faster than ever before and the poor are getting poorer, while the middle class is disappearing.
http://theeconomiccollapseblog.com/archi...The only way to restore some economic equity is through a progressive tax structure, but right wing is going in the opposite direction. They want to make the 1% even richer and the 99% poorer.
The right bemoans the fact that almost half of the people now are in such dire economic straights that they don't have to pay income taxes. But they still struggle to come up with enough to pay payroll taxes, State and local taxes.
Yes we should do away with our complicated Income tax system with it's tens of thousands of pages that only the rich can navigate by hiring tax attorneys. All of those pages have thousands of loopholes that the rich can take advantage of.
Rick Perry is the latest on the right proposing a flat tax. The only question is will he eliminate all deductions or just the unpopular ones. Will the rate be 18% or 28% . Will the millionaires get a 90% tax cut or just an 80% tax cut? Will the poor have to pay 60% more or will their taxes double or triple?
I would also like to propose a flat tax. It would just have one rate that rich and poor alike pay. I propose that everyone pay only 0.20% tax every time any money is moved. This should produce as much revenue as the Income tax and it can be done automatically, by the banks any time funds are transferred. This is as simple as it gets and there are no tax forms and no cheating, and if foreign or international corporations wanted to deal in the US they would pay the same rate.
When someone buys $10 worth of food they only pay 2 cents tax. The farmer when he gets $2 for the food only pays .4 cent, the trucker pays about .2 cent, the food processor pays about 6 cents tax.
That isn't much money so how does it add up to be as much as the Income Tax?
Remember that guy that makes millions turning stock around in fifteen minutes? That three million dollar transaction would contribute $6000 in tax. That is still not much compared to the $2,994,000 profit, but this sort of thing goes on a LOT!
Foreign Exchange currency speculation is $3.2 trillion per day! Just that one source would bring in $ 6.4 billion in revenue each day!
http://www.quickoverview.com/finance/for...Would this harm the free market? NO. In fact currency speculation is harmful and has destroyed entire nations.
Remember that guy that leverages his money 30 to one to make a hostile takeover? For every one of his dollars spent, there are 30 dollars that just appear on paper. But he would have to pay taxes on those thirty paper dollars if he wanted to make the deal. This would discourage this type of reckless gambling with other people's money, but the rate is so low that it wouldn't discourage legitimate business deals. The 4-banks who received government bailout's in 2008, have $235trillion in derivatives on their books! Those derivatives would bring in $470 billion dollars of revenue!
http://usawatchdog.com/four-biggest-bank...Derivatives are another financial invention that have absolutely no purpose in the real free market world. Their only purpose is to make money for investors, so no one would be hurt (except those investors) if they stopped trading derivatives altogether. Not one house would be lost and no factories would close. Once again the 0.2 % tax is usually lower than brokerage fees so it won't hurt honest business deals.
Currently all of Europe is considering a much smaller .05% financial transaction tax.
http://www.stockmarkettoday.cc/eu-formal...A global FTT was to be considered at the G20 meeting in November, but objections by mainly the US and Canada made them postpone that decision till next year.
http://www.koreatimes.co.kr/www/news/opi...An FTT would tax mostly the 1% and the Occupy Wall Street movement is planning on protesting the G20 meeting to pressure them to instate an FTT.
http://www.freerepublic.com/focus/f-news...