All you no deduction hawks:
Imagine you are a trucker.
You recieve income for shipping goods.
You use that income to buy gas and upkeep your truck.
You get paid 200,000$ /year to ship goods.
The gas and the truck costs 170,000$ /year.
Under the current system, your income is 30,000$/year. You pay, say, 5,000$ in income tax.
Under the new system, with no deductions and a 15% flat tax, you'd pay 30,000$/year in tax. And starve.
Well, actually, you'd raise your prices or starve.
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Originally Posted by smooth
Taxation isn't and shouldn't be based on one's income. Taxation should be based on use.
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How do you pay for military security? Police protection?
The fairest way to charge for those would be a percentage of your wealth, which the military/police protect.
Economic planning?
Healthy economies benefit you in purportion to how much you earn. The fairest way to charge people would be based off a percentage of their income.
That negative tax is sort of funny. In these parts, tax deductions floor out at 0$ income tax/year. =) Some you can carry from year to year, or transfer to someone else (education tax credits).