The Flat Tax
“The experiment started in a small way in 1994, when Estonia became the first country in Europe to introduce a “flat tax†on personal and corporate income. Income is taxed at a single uniform rate of 26%: no schedule of rates, no deductions. The economy has flourished. Others followed: first, Latvia and Lithuania, Estonia’s Baltic neighbours; later Russia (with a rate of 13% on personal income), then Slovakia (19% on personal and corporate income). One of Poland’s centre-right opposition parties is campaigning for a similar code (with a rate of 15%). So far eight countries have followed Estonia’s example (see article). An old idea that for decades elicited the response, “Fine in theory, just not practical in the real world,†seems to be working as well in practice as it does on the blackboard.” (more…)
Hooray hooray. Finally, a group of black folks willing to talk money. The IRS is a joke. All you have to do is know the rights codes and the right policy and you can get away with anything. Unfortunately, the masses don’t know how to keep their income in their pocket. A flat tax would solve a lot of problems. It would also prevent the poorest of the poor to bare the brunt of the taxes in this country. Sign me up. I have my flat tax money together.
Comment by Saudia | March 21, 2006
The poorest of the poor don’t pay taxes now. Under a flat tax, unless a minimum income was included, would charge the poor income tax.
Comment by Dolphin | March 22, 2006
What do you mean the poor don’t pay tax. Are you mad. I see client’s on a part time basis and require them to bring in check stubs to show progress. I had a client bring me a check the other day for $80. And yes taxes had been taken out. He does not have dependants and does not own a home so he will not be getting it back at the end of the year. Poor people don’t pay taxes. HUH This is America everyone pays taxes.
Comment by Saudia | March 22, 2006
C’mon Saudia. Keep it real.
If it was a weekly check, that amounts to $4160. per year. He gets it ALL back, plus additonal money. At $5.15 an hour, he only worked 15.5 hours. It ain’t easy out there for some people, but if he’s able-bodied, you might suggest a second job. If he isn’t, then he gets food stamps, welfare, Section 8, and is probably qualified for other programs.
Comment by Dolphin | March 24, 2006
He needs to live today not at the end of the year.
Comment by Saudia | March 24, 2006