I am curious about the opinions of people here on taxes. While their necessity is undeniable, the method used to collect can be hotly debated. Income tax is the main discussion for this thread.
Which is better?
Varying rate dependent upon income level.
Varying rate dependent upon income level with tax deductions.
Per capital tax (how the US federal government collected taxes before the 16th amendment.)
IMHO, the flat tax is the best idea. Lets say a 10% tax rate for easy math. If I make $10k a year, my taxes shall be $1k. If I make $10M a year, taxes will be $1M. This means I will never cross a threshold pay level and end up taking home less money after a pay raise.
At this time, the US tax code is ridiculous. Each year, millions of Americans prepare tax paperwork starting in January hoping to finish by 15 April. Many families are uncertain until the final documents are filed. This is a huge waste of manpower at every level. With a flat tax, the IRS could be substantially cut down. This alone will save the government millions.
Tax breaks for the rich. How unfair is this? The highest tax bracket in America is roughly 33%. The lowest tax bracket is much closer to 10%. How is this fair?