🚀 go-pugleaf

tporczyk@netcom.com (Tony Porczyk) wrote:
>That's why original exemptions were supposed to cover the cost of
>living.  You must agree that the current exemptions are a joke.  That is
>also why I would strongly support sales tax if it included "necessities"
>exemption, such as food.  That would be fair for those who do not make
>much money. It would also stimulate the economy by channeling money
>currently spent irrationally (how do we avoid taxes?) into profitable
>investments.  This more efficient use of the available capital is an
>important aspect of the proposed bill.

I'm in total agreement that the current exemptions are a joke and I would much 
rather see a flat federal income tax of 15% on all income over a minimal cost of 
living requirement with no exemptions for anything. The problem I see with a 
federal sales tax is that you would have to make exemptions for most things that 
the poor purchase to ensure they are not paying a greater percentage of their 
income for taxes than is being paid by middle and upper income groups. Clothes, 
furniture, energy, transportation, food, medical, education and many other things 
are minimal necessities for the poor and to make them pay a federal tax on these 
items does not seem reasonable to me. If we try to set up a system where they can 
avoid paying the tax on these items it could easily end up being as much of a 
joke as the current exemption based tax system.

I think a simple postcard for a tax return would cost hundreds of times less than 
tracking all purchases for federal tax purposes and filing on all of these 
purchases. Remember also that most things we purchase are made up of many 
individual raw items whick are purchased to be combined and then resold over and 
over again before ending up in the consumer's hands. Will each of these levels of 
sales be taxed 15% or will they require exemptions?

I'm also curious about how a 15% flat tax would affect the current capital gains 
tax structure?

..John