Thoughts on a flat-tax solution to economic inequality and corruption.

[RadioGod]

I orginally posted this to another forum member. But I really would like feedback on it. There may be flaws I don't see right now. Weigh in.

Our current federal budget is 4.11 Trillion dollars. If we include State and local budgets, that number becomes 6.41 Trillion. So, it costs us 6 1/2 Trillion per year to run our country right now. If we got rid of all taxes, which would also scrap the IRS and all county auditors by default, and including the scrapping of all state and local taxes, we could come up with that amount from 1 single tax- a universal flat sales tax.

There were 56 Trillion dollars in purchases in 2017 in the US, only 612 Billion of which was at grocery stores. Of those Grocery chain sales, only about 120 billion was on actual food.
If we tax everything except food, we still end up with 55.9 Trillion in taxable sales. If we set our sales tax at 12%, that would be 6.7 Trillion in tax revenues. Distributed correctly, that would cover the entire cost of government as we know it today at 6.41 Trillion.

Bear in mind this would eliminate ALL other forms of taxation. This would also make it so everyone pays their own share equally, and with no IRS, there are no write-offs, refunds, or loopholes. When poor people buy something for a dollar, 12 cents goes to taxes. When a wealthy person buys a $200,000 car, $24,000 goes to taxes. Both the rich and the poor would pay their own way, equal to their economic capacity. And to keep things fair, I have subtracted the 120 billion in actual groceries. I don't think we should pay taxes on food, water, or air, as they are human necessities.

But restaurants, fast food joints, those should be included in the sales tax.

[Helena]

Is that 12% Federal? Do States still add their sales tax in the mix in your scenario?

[Private Pickle]

I orginally posted this to another forum member. But I really would like feedback on it. There may be flaws I don't see right now. Weigh in.

Our current federal budget is 4.11 Trillion dollars. If we include State and local budgets, that number becomes 6.41 Trillion. So, it costs us 6 1/2 Trillion per year to run our country right now. If we got rid of all taxes, which would also scrap the IRS and all county auditors by default, and including the scrapping of all state and local taxes, we could come up with that amount from 1 single tax- a universal flat sales tax.

There were 56 Trillion dollars in purchases in 2017 in the US, only 612 Billion of which was at grocery stores. Of those Grocery chain sales, only about 120 billion was on actual food.
If we tax everything except food, we still end up with 55.9 Trillion in taxable sales. If we set our sales tax at 12%, that would be 6.7 Trillion in tax revenues. Distributed correctly, that would cover the entire cost of government as we know it today at 6.41 Trillion.

Bear in mind this would eliminate ALL other forms of taxation. This would also make it so everyone pays their own share equally, and with no IRS, there are no write-offs, refunds, or loopholes. When poor people buy something for a dollar, 12 cents goes to taxes. When a wealthy person buys a $200,000 car, $24,000 goes to taxes. Both the rich and the poor would pay their own way, equal to their economic capacity. And to keep things fair, I have subtracted the 120 billion in actual groceries. I don't think we should pay taxes on food, water, or air, as they are human necessities.

But restaurants, fast food joints, those should be included in the sales tax.

I'm down and yes. Restaurants and fast food joints are part of the entertainment world.

[Helena]

Is that 12% Federal? Do States still add their sales tax in the mix in your scenario?

Never mind, I read it again and it looks like no.

And if so, with the no.. you know it will likely never get off the ground. Not that it's a bad idea. It's a good idea. It's been a good idea for a long time.

But our monies are taxed and taxed and taxed again, and then put through some more wringers to see if anything else can be squeezed out before you get your spending money to go out there and have it go through the cycle all over again.

I'd like property tax to not be the burden that it is.

[Helena]

...There may be flaws I don't see right now. ...

This would also make it so everyone pays their own share equally, and with no IRS, there are no write-offs, refunds, or loopholes.

There are your flaws. Those are the reasons a majority of lawbreakermakers will never pass something like this.

[Just AnotherPerson]

What this would mean is no more free ride for the corporations, and big business. Most dont realize it but we the people are paying the bills of the most wealthy in this nation. We are taxed at least 60% of our earnings. We are taxed on our income, then we are taxed on everything we buy, and then we are taxed on our utilities, and property. The list goes on. The money is redistributed and put into the pockets of the wealthy. It is becasue they are not paying their fair share. By doing this flat tax we truly could end corruption. We could pay off our debt. we could end the IRS. The little guy wouldn't be paying for the big guy anymore, and our nation would flourish and prosper like never before. This would not end government, it would just end the corporations corrupt use of the government to their advantage. Everyone would truly pay their fair share.

There would be no more redistribution of money, taking from the poor, to give to the wealthy. We would no longer be paying their way. With this idea, each person would pay their own way, and it would be equal and fair. The math needs worked up, it needs studied and delved deeply into.

[hanger4]

I orginally posted this to another forum member. But I really would like feedback on it. There may be flaws I don't see right now. Weigh in.

Our current federal budget is 4.11 Trillion dollars. If we include State and local budgets, that number becomes 6.41 Trillion. So, it costs us 6 1/2 Trillion per year to run our country right now. If we got rid of all taxes, which would also scrap the IRS and all county auditors by default, and including the scrapping of all state and local taxes, we could come up with that amount from 1 single tax- a universal flat sales tax.There were 56 Trillion dollars in purchases in 2017 in the US, only 612 Billion of which was at grocery stores. Of those Grocery chain sales, only about 120 billion was on actual food. If we tax everything except food, we still end up with 55.9 Trillion in taxable sales. If we set our sales tax at 12%, that would be 6.7 Trillion in tax revenues. Distributed correctly, that would cover the entire cost of government as we know it today at 6.41 Trillion. Bear in mind this would eliminate ALL other forms of taxation. This would also make it so everyone pays their own share equally, and with no IRS, there are no write-offs, refunds, or loopholes. When poor people buy something for a dollar, 12 cents goes to taxes. When a wealthy person buys a $200,000 car, $24,000 goes to taxes. Both the rich and the poor would pay their own way, equal to their economic capacity. And to keep things fair, I have subtracted the 120 billion in actual groceries. I don't think we should pay taxes on food, water, or air, as they are human necessities. But restaurants, fast food joints, those should be included in the sales tax.

You're describing a consumption tax, not a flat tax.

[Chris]

I orginally posted this to another forum member. But I really would like feedback on it. There may be flaws I don't see right now. Weigh in.

Our current federal budget is 4.11 Trillion dollars. If we include State and local budgets, that number becomes 6.41 Trillion. So, it costs us 6 1/2 Trillion per year to run our country right now. If we got rid of all taxes, which would also scrap the IRS and all county auditors by default, and including the scrapping of all state and local taxes, we could come up with that amount from 1 single tax- a universal flat sales tax.

There were 56 Trillion dollars in purchases in 2017 in the US, only 612 Billion of which was at grocery stores. Of those Grocery chain sales, only about 120 billion was on actual food.
If we tax everything except food, we still end up with 55.9 Trillion in taxable sales. If we set our sales tax at 12%, that would be 6.7 Trillion in tax revenues. Distributed correctly, that would cover the entire cost of government as we know it today at 6.41 Trillion.

Bear in mind this would eliminate ALL other forms of taxation. This would also make it so everyone pays their own share equally, and with no IRS, there are no write-offs, refunds, or loopholes. When poor people buy something for a dollar, 12 cents goes to taxes. When a wealthy person buys a $200,000 car, $24,000 goes to taxes. Both the rich and the poor would pay their own way, equal to their economic capacity. And to keep things fair, I have subtracted the 120 billion in actual groceries. I don't think we should pay taxes on food, water, or air, as they are human necessities.

But restaurants, fast food joints, those should be included in the sales tax.

It sounds like the Fair Tax proposed a few years back by Neal Boortz and John Linder. Are you familiar with that proposal?

[Chris]

What this would mean is no more free ride for the corporations, and big business. Most dont realize it but we the people are paying the bills of the most wealthy in this nation. We are taxed at least 60% of our earnings. We are taxed on our income, then we are taxed on everything we buy, and then we are taxed on our utilities, and property. The list goes on. The money is redistributed and put into the pockets of the wealthy. It is becasue they are not paying their fair share. By doing this flat tax we truly could end corruption. We could pay off our debt. we could end the IRS. The little guy wouldn't be paying for the big guy anymore, and our nation would flourish and prosper like never before. This would not end government, it would just end the corporations corrupt use of the government to their advantage. Everyone would truly pay their fair share.

There would be no more redistribution of money, taking from the poor, to give to the wealthy. We would no longer be paying their way. With this idea, each person would pay their own way, and it would be equal and fair. The math needs worked up, it needs studied and delved deeply into.

No, how you tax has little to nothing to do with how you spend.

[Chris]

You're describing a consumption tax, not a flat tax.

Yes, exactly.