Trust me—you really don’t know what you’re missing.
The Flat Tax
The time has come to change the rules of how our government collects our hard-earned
money. The current system is complex and completely unfair. Our country was founded on the
principles of individual rights and equality.
That anyone should pay a different percentage of his income than his neighbor does is a
fraud and divisive. The flat income tax proposal would levy a bill of 17% of income
against every taxpayer in the U.S. with generous (but identical) exemptions for
individuals, married couples, and dependants. Every individual would fill out the same
simple postcard-sized (4″×6″) form.
I wholeheartedly support this effort, and urge you to do the same.
This image of the flat tax form and the FAQ below are taken from a mailing
by Citizens for a Sound Economy (CSE), led by Steve Forbes.
Answers to Commonly Asked Questions About a Flat Tax
- Q: Where do I put other types of income on the Flat Tax form—like Social Security
benefits, interest, dividend income, capital gains, and inheritance income?
- A: Under a 17% Flat Tax, income is taxed only once. Because you pay taxes when you earn
income, you do not pay again if you collect the income later or give it to someone else.
Therefore, neither Social Security benefits nor income from an inheritance are taxed under
the Flat Tax plan. In the case of interest, dividend or investment income, the taxes are
paid at the business level. You, as an individual, do not pay taxes again.
- Q: Wouldn’t it be easier to have a national sales tax and get rid of the IRS?
- A: A national sales tax offers many of the same benefits as a Flat Tax, but it has some
practical problems. Quite simply, a national sales tax has never replaced a national
income tax in any country that has tried it. And until the 16th Amendment to the
Constitution (which establishes the income tax) is repealed, the sales tax could add to,
rather than replace the income tax.
- Q: How are businesses taxed under the Flat Tax plan?
- A: Business owners file a business income tax form—also the size of a post card. They
record all revenue, subtract business expenses and employee wages, and pay a 17% tax on
remaining revenue.
This page was last modified on Monday, 11-Oct-2004 19:01:41 PDT.
