The Need for a Flat Tax

Uncle Sam

America’s current income tax code is simply unfair.  From the cradle to the grave, the government has its hands in our pockets.  It’s a reality that our extant income tax code punishes wealth: As individuals move up the economic ladder, an increasing percentage of their income government entitles itself to receive.  Dr. Ben Carson recently lectured President Obama about how unfair the tax code is.  He highlighted that the bible explains that God requires everyone to give ten percent of his or her earnings to Him.  As Dr. Carson disclosed, God does not care how little or great one makes—He wants everyone to pay the same percentage of his or her income to Him.  For Dr. Carson, this is the same principle government should embrace.  He attacked the argument that a flat tax would not “punish” the wealthy enough by positing that “it’s not supposed to.”

Although it’s difficult for many to resist trying to take more of rich people’s money, especially for those who are barely making ends meet, there must be an understanding that this type of thinking deincentivizes people from striving to become wealthy.  In the 21st century, we shouldn’t let this type of class warfare continue.  Let people enjoy more of the money they’ve earned.  A poor man has never given someone a job.

When we’re fair to wealthy people, we enable them to create more jobs.  In the struggling Obama economy, Americans need an explosion of job creation.  Replacing the current income tax code with a flat tax would help to spur job creation, ameliorate consumer confidence, and boost personal finance.

If we have a flat tax in place, we will not have to worry so much about individuals finding tax loopholes.

Our tax code must be reformed to make America the most attractive nation to do business.  Individuals are seeking tax shelters and shipping jobs overseas because our tax code is robbing them of their wealth.  If someone is openly going to keep robbing you, you’re not going to sit there and continue to let him or her rob you.  Those aforementioned individuals are protecting themselves from this same victimization.

Do you believe the current income tax code is fair?  Why or why not?  What do you think about replacing the existing tax code with a flat tax?  What are your ideas about reforming the income tax code?

Antonio Maurice Daniels

University of Wisconsin-Madison

9 comments

  1. The flat tax should appeal to both sides of the political spectrum in the U.S. because cheating and evasion would be reduced or eliminated. All incomes above the poverty line under a flat tax should be taxed at the same rate of 10%. When I say all incomes, I mean earned and unearned income. Liberals claim a flat tax screws the poor and is a handout to the wealthy, a claim that is patently absurd.

  2. Antonio Maurice Daniels, when I say all incomes, I mean both earned income and capital gains. Very few deductions if any would be kept. Everything gets taxed at 10%. Corporate profits, personal income and capital gains. Liberals should advocate a flat tax of this nature. Why? Because it will make sure the rich pay their fair share.

  3. Antonio Maurice Daniels, 10% on everything seems reasonable. The only thing I would not tax is savings. What I mean is after tax savings would not be taxed at all. Imagine what that would do for our economy and standard of living.

    1. You would have to make sure that “savings” is well-defined because people will try to use “savings” as a shelter/safe haven for things that are really not “savings.” How are you, therefore, defining “savings”?

  4. Antonio Maurice Daniels, according to Wikipedia, savings would be income that is not spent. Of course, your point about savings being well-defined is valid. Back to my earlier point where income and investment being taxed at the same rate is concerned, people on the far Left should advocate a plan like this. There is an element of double taxation. However, 10% on everything would not discourage production or investment. You said you could support my reforms at the federal level. What do you think about investment and labor being taxed equally? Do you support it, oppose it, or have no opinion either way? Personally, I oppose progressive taxation as liberals define it. However, I think a valid point is to be made that investment income should not be worth more than earned income. There would be no business tax, alternative minimum tax, payroll tax or death tax.

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