Some days I think I missed my calling. This course sounds so interesting!

This is exactly what I was thinking. Fascinating. I never considered the power aspect of it.

Are their any countries that do have a flat tax or a system like described above?

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I don't think so, but it's been 12 years since I took the course. At the time there were European countries that had a Value Added Tax (VAT) as a type of corporate tax.

This is the text I used in that class. It's a series of articles on various forms of taxation, who should be taxed, and how to influence taxpayer behavior through the tax code. It's fairly readable once you get the terms down:

Amazon.com: Tax Policy: Readings and Materials (University Casebook Series): Philip D. Oliver, Fred W. Peel: Books

Very good observation! That is exactly how it would work if it was enacted. As I mentioned, there would still be people not paying taxes at all. And it would probably be somewhere in the 20% range.

So would a flat tax takeinto account how many people were supported by an individuals income?

Good question!

Well you could basically write whatever you wanted into the tax code. So yes, you could still get a deduction per child or whatever.

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I've always thought of this as a "too much is given much is expected" kind of senerio. While my dh & i have worked hard all our lives & believe strongly in being responsible, I also see how truely blessed we have been. While paying taxes is not fun, I think it's still important to look out for people who have less. I wouldn't support a flat tax for that reason. I guess I am liberal, but it's not like I don't think people should be personally responsible for their actions. I realize there is percentage of people out there who are basically lazy & unmotivated, but I also think there is a bigger percentage of people who just need a hand to help them up. I feel like I need to helping them up, since I am in position to do so. Life throws curveballs & you never know, you could need a hand at some point. Just my thoughts.....I'm not a particuarly political person! My ramblings may not make sense except to me.

Interesting thread!!!

A central issue in tax reform is always who wins and who loses. Under the flat tax, low-income households would lose because they now pay no income tax and are eligible for a refundable EITC of up to $3,370. Although the flat tax is more progressive than a VAT, it is more regressive than the current system. A flat tax would provide huge gains for high-income households, both because their marginal tax rate would fall and because they consume relatively less of their income than do low-income households. As a result, if a flat tax were to raise as much revenue as the current one, the tax burden for the middle class would have to rise. Consumption taxes are generally less regressive when viewed over longer periods of time because income changes from year to year, but they would raise tax burdens on lower- and middle-income households over any time frame.

Perceptions of fairness may also be difficult to retain when, under the flat tax, some wealthy individuals and large corporations remit no taxes to the government while middle-class workers pay a combined marginal tax rate above 30 percent on the flat tax, state income tax, and payroll taxes.

A third concern is how reform would affect different sectors of the economy. Removing the mortgage interest deduction and the deductibility of state and local property taxes may have profound effects on housing prices and home ownership, but the results would depend on how interest rates adjust, the sorts of grandfathering rules that are introduced, and other factors. How and when health insurance benefits and coverage rates would adjust to the elimination of tax-favored treatment of employer-provided health benefits is an open question.

Removing the deduction for charitable contributions would reduce overall giving and could affect its composition as well: Wealthy donors, for whom the write-off is now worth the most, tend to favor hospitals and universities; low-income donors, religious institutions.

Flat Tax: From The Encyclopedia of Taxation and Tax Policy

I support a flat tax, why should the wealthy pay for all the poor? Makes no sense to me. We should all have an equal burden to pay no matter how much we make, or how successful we've become.

So, for all of you that are for the flat tax. . . just for giggles. . . what programs would you cut due to the lower revenue brought in by the new tax system? (Sorry, there is no way around that one in my mind unless we use a not so perfect flat tax.)

Aliadam, you know I agree with you on the harder you work, the more money you should keep. That is why I have mixed feelings about the flat tax. I fear the things I DO need from government (mainly national defense) would take the brunt of the future cuts - not the social programs which do redistribute wealth. I just don't think it would work in this country with the way people think. That is one of the main reasons I am against it. But, I do change my thinking on it sometimes. Today, nah. But, I am cynical right now.

[quote=Claire;809818]So, for all of you that are for the flat tax. . . just for giggles. . . what programs would you cut due to the lower revenue brought in by the new tax system? (Sorry, there is no way around that one in my mind unless we use a not so perfect flat tax.)[quote]

Welfare, medical assistance, food stamps....especially for the people very capable of making a living and living within their means. If welfare is to exist I do think the government has a right to say what foods are covered....no little debbies, no sugary juices etc.

In MN, about a year ago, the government decided that little debbies were not allowed to be purchased with food stamps. All the news stations actually covered this story. One news station interviewed a gas station owner and he said the majority of his business comes from the $.25 little debbie's that are purchased using food stamps He said he didn't think he would be able to stay in business because of this ban. They also interviewed two women who said "When I am done eating my steak and potatoes for dinner, I should be able to have dessert and I love little debbie's" I looked at my husband and could not believe it! Wish I could eat steak for dinner any night!!

People feel entitled...the government should pay for everything! It is ridiculous and we need to get out of the mentality.