flat tax/fair tax, yea right

[flaja]

yes, let's tax those people's debt who are too much in debt....that will help!

can't pay debt, thats ok, let's tax it...

If debt were taxed, then maybe deadbeats who make their living living on credit would think twice about it.

 

[DamnYankee]

It's a bullshit system. It's regressive, unfair to working people and the middle class and it's easy to evade. You know why? How will you enforce it?

The only fair form of taxation is progressive taxation.

Lies. Read about it and educate yourself.

 

[Cancel 2016.2]

No, we don't have enough. That's a myth.

It is not a myth. There are enough. When you look at the effective tax rate of those that make $1mm plus, most are able to get it under 20% using the current system. This takes away their ability to do so. Again, given the amount we have raised our national debt over the past decade alone, it would take time. It is silly to suggest there aren't enough as the extra bracket would simply remain in place until it was done.

 

[Cancel 2016.2]

I would tax all privately held debt, both corporate and individual, with an exemption for first mortgages on primary residences. I would use the money raised to redeem federal bonds and whatever other debt instruments there are.

Up-to-date and accurate figures are hard to come by on the net, but as near as I can tell the federal debt right now is something like 10 trillion dollars and private debt is around 12 trillion. For the sake of argument I would assume that corporations and individuals would pay off 10% of their debt every year (that is 10% of what is left owed at the end of each year, not 10% of the total amount owed when the tax is implemented the first year). I would assume a tax rate of 10% on outstanding debt. The debt tax would be reduced when the federal debt is paid off- I wouldn’t abolish the debt tax altogether because I want to discourage debt.

I don’t know right off how long a 10% debt tax would take to pay off the federal debt; it is sad commentary that I cannot write a Quick BASIC program to calculate the payoff time because my computer cannot deal with numbers in the trillions. But I did some rough calculations myself a moth or so ago showing that it would take something like 10 or 20 years to pay off the federal debt.

I don’t know who keeps track of corporate debt, but consumer debt is already recorded with credit bureaus so lenders can do credit checks. The tax could be based on the data the existing credit unions have, or all debts could be reported to the federal government which could then be the credit bureau of record and by performing regular credit bureau services tax collection could pay for itself.

Then I do not like that plan. You can tax the income from the debt, but to tax the debt itself is counterproductive.

 

[flaja]

It is not a myth. There are enough. When you look at the effective tax rate of those that make $1mm plus, most are able to get it under 20% using the current system. This takes away their ability to do so. Again, given the amount we have raised our national debt over the past decade alone, it would take time. It is silly to suggest there aren't enough as the extra bracket would simply remain in place until it was done.

Point blank questions calling for simple and direct answers:

How many people in the U.S. have yearly incomes of more than $1,000,000?

How many corporations in the U.S. have yearly incomes of more than $1,000,000?

In an average year what is the combined total income of every individual and every corporation that has a yearly income of $1,000,000?

 

[flaja]

Then I do not like that plan. You can tax the income from the debt, but to tax the debt itself is counterproductive.

How so? If taxing debt can prevent boom and bust cycles in the economy, then taxing debt is very worthwhile.

It is a fundamental fact of economics that you will have less of something if you tax it. This country needs less debt so our best option is to tax it.