Comments on: The Flat Tax is NOT Fair http://www.theamateurfinancier.com/blog/the-flat-tax-is-not-fair/ Thoughts on Money, Investing and Life Mon, 15 Mar 2010 04:13:19 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: Roger http://www.theamateurfinancier.com/blog/the-flat-tax-is-not-fair/#comment-401 Roger Thu, 22 Oct 2009 07:14:24 +0000 http://www.theamateurfinancier.com/blog/?p=1003#comment-401 RD, I am aware that most flat tax proposals contain exemptions, usually tied to the poverty line, which serve to make the flat tax overall progressive. In this case, the tax the Financial Samurai proposed (which inspired this post) actually does not, which is why I only addressed that point in the third to last paragraph of this post. I still question how fair a flat tax system is, even with a healthy exemption, for the same utility reasons I've mentioned above, but many, if not all, of my qualms would be dispelled by adding such an exemption to the flat tax proposal. RD, I am aware that most flat tax proposals contain exemptions, usually tied to the poverty line, which serve to make the flat tax overall progressive. In this case, the tax the Financial Samurai proposed (which inspired this post) actually does not, which is why I only addressed that point in the third to last paragraph of this post. I still question how fair a flat tax system is, even with a healthy exemption, for the same utility reasons I’ve mentioned above, but many, if not all, of my qualms would be dispelled by adding such an exemption to the flat tax proposal.

]]> By: RD Lang http://www.theamateurfinancier.com/blog/the-flat-tax-is-not-fair/#comment-396 RD Lang Tue, 20 Oct 2009 20:31:14 +0000 http://www.theamateurfinancier.com/blog/?p=1003#comment-396 Most flat tax proposals include generous income exemptions for everyone, including dependent children. See Steve Forbes proposal for an example. If the income exemption for an individual is $15,000, a married couple would pay no income tax on the first $30,000 of income. The marginal rate is the same for everyone (Forbes suggests 17%). You get the following: Married Couple Income = $40,000 / $1,700 tax / 4.25% effective tax rate Income = $250,000 / $37,400 tax / 14.96% effective tax rate. Most flat tax proposals include generous income exemptions for everyone, including dependent children. See Steve Forbes proposal for an example.

If the income exemption for an individual is $15,000, a married couple would pay no income tax on the first $30,000 of income. The marginal rate is the same for everyone (Forbes suggests 17%). You get the following:
Married Couple
Income = $40,000 / $1,700 tax / 4.25% effective tax rate
Income = $250,000 / $37,400 tax / 14.96% effective tax rate.

]]> By: Roger http://www.theamateurfinancier.com/blog/the-flat-tax-is-not-fair/#comment-360 Roger Mon, 12 Oct 2009 16:54:59 +0000 http://www.theamateurfinancier.com/blog/?p=1003#comment-360 You're quite welcome; it was a thought-provoking post, and so I shared my thoughts. Glad you thought they were interesting, and I'll see you around (on your blog or mine). Take Care, Roger You’re quite welcome; it was a thought-provoking post, and so I shared my thoughts. Glad you thought they were interesting, and I’ll see you around (on your blog or mine).
Take Care,
Roger

]]> By: Financial Samurai http://www.theamateurfinancier.com/blog/the-flat-tax-is-not-fair/#comment-359 Financial Samurai Sun, 11 Oct 2009 23:12:19 +0000 http://www.theamateurfinancier.com/blog/?p=1003#comment-359 Hey Roger, Just wanted to drop by and thank you for providing your insights over at my site. I really appreciate your thoughts and I look forward to hearing more stuff from you in the future. Best, Financial Samurai Hey Roger,

Just wanted to drop by and thank you for providing your insights over at my site.

I really appreciate your thoughts and I look forward to hearing more stuff from you in the future.

Best,

Financial Samurai

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