Is there a trickle up policy?

[Hlleonard]

I am intrigued with the idea of a consumption tax. The rich would pay far more because they of course spend much more. No tax on food of course and don't double tax, so no tax on used items. I think it would give many that need it tax breaks, and give more opportunities for those who want to save and invest the opportunity of doing so because it would encourage saving. That was the one idea I really liked that Huckabee was pushing when he ran for president of few years back. I forget how many billions I think it was said at the time that would not be sucked out of the economy by eliminating the expenses that filing traditional taxes currently cost Americans and American companies. It also would basically eliminate the need for the IRS ( well except that they now are supposed to enforce Obama Care), but that is another topic for discussion.

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I suspect somewhere in the future we will see some form of that... The idea makes more noise every year,Personally I believe it will hurt us as a country and further shift the tax burden to the folks who can least afford it... In the middle part of the last century the top tax rate was 70 or 80 percent I think (not going to look that up), now it is 38% or something like that and it seems the end result is a massive debt we likely will never be able to get out from under.... It seems the more we reduce the taxes on the rich the worse shape we get in.

[SLP]

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I suspect somewhere in the future we will see some form of that... The idea makes more noise every year,Personally I believe it will hurt us as a country and further shift the tax burden to the folks who can least afford it... In the middle part of the last century the top tax rate was 70 or 80 percent I think (not going to look that up), now it is 38% or something like that and it seems the end result is a massive debt we likely will never be able to get out from under.... It seems the more we reduce the taxes on the rich the worse shape we get in.

The rate were much higher, but it was not as different as at first glace or one might think. When the rates were that high the tax code also had many more tax breaks and loopholes available in order for people to be able lower their actual rate just because the rates were so high. It basically was a real mess and much more inefficient. Once the rates were lowered the tax code was also simplified and many of those loopholes were done away with. Really either a consumption tax or a very simple flat tax is the way to go. Having high rates and then having to have all kinds of available breaks and loopholes for people to take just to lower those rates is very inefficient and costly.

[Hlleonard]

The rate were much higher, but it was not as different as at first glace or one might think. When the rates were that high the tax code also had many more tax breaks and loopholes available in order for people to be able lower their actual rate just because the rates were so high. It basically was a real mess and much more inefficient. Once the rates were lowered the tax code was also simplified and many of those loopholes were done away with. Really either a consumption tax or a very simple flat tax is the way to go. Having high rates and then having to have all kinds of available breaks and loopholes for people to take just to lower those rates is very inefficient and costly.

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There are a lot of folks who believe a flat tax would be the answer to our budgetary problems... It just seems to me if half the people, as Mr. Romney says, pay no taxes, then our system must be saying these folks are in a financial condition where they can't afford to pay taxes, if thats the case then I don't understand how charging them taxes on goods and services won't result either in a greater hardship on them or cause them to need more government assistance and at the same time we are reducing taxes on the upper class so that looks to me like a disaster in the making.

[SLP]

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There are a lot of folks who believe a flat tax would be the answer to our budgetary problems... It just seems to me if half the people, as Mr. Romney says, pay no taxes, then our system must be saying these folks are in a financial condition where they can't afford to pay taxes, if thats the case then I don't understand how charging them taxes on goods and services won't result either in a greater hardship on them or cause them to need more government assistance and at the same time we are reducing taxes on the upper class so that looks to me like a disaster in the making.

It has been years since I researched this so I don't remember specific numbers, but with Huckabe's proposal people would receive a rebate each year so in effect for the most part those who pay nothing now would continue to do so. Also as I said no food or any used items would be taxed. So where now if a person purchases a used car and pay tax on it with his "fair tax" proposal they wouldn't pay a tax on it since the original consumption tax was already previously paid on it. It would really help the poor if done right. The current system where the poor can not deduct their rent while homeowners are able to their mortgage interest isn't very "fair" now is it?

[DJD]

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There are a lot of folks who believe a flat tax would be the answer to our budgetary problems... It just seems to me if half the people, as Mr. Romney says, pay no taxes, then our system must be saying these folks are in a financial condition where they can't afford to pay taxes, if thats the case then I don't understand how charging them taxes on goods and services won't result either in a greater hardship on them or cause them to need more government assistance and at the same time we are reducing taxes on the upper class so that looks to me like a disaster in the making.

We all have budgets and I don't care if someone else experiences budget issues like I/we all do. Apparently Obama didn't care either or he wouldn't have done that to people like me with Obamacare.

IMO....The assumption that people who don't pay taxes are hard up is another false thought. Many are scamming the system and using them as a reason to not try a consumption tax or flat tax is unfair. It's saying the minority will dictate what the majority does and that is wrong in my opinion. Also it might clean up some of the abuse the system gets hammered with now.

I'm sure some are hurting but I know many who just don't care and spend way more than they should on eating out or buying way to much junk...them when they don't get their 4k back each year they gripe. Of course they want that large check to go buy a big screen.

Im really not as cold hearted as it sounds. I just don't like to keep doing things the same way when it suckks and when a new idea is out there the concern is more about the few instead of the many. There has to be a better way.

[Hlleonard]

We all have budgets and I don't care if someone else experiences budget issues like I/we all do. Apparently Obama didn't care either or he wouldn't have done that to people like me with Obamacare.

IMO....The assumption that people who don't pay taxes are hard up is another false thought. Many are scamming the system and using them as a reason to not try a consumption tax or flat tax is unfair. It's saying the minority will dictate what the majority does and that is wrong in my opinion. Also it might clean up some of the abuse the system gets hammered with now.

I'm sure some are hurting but I know many who just don't care and spend way more than they should on eating out or buying way to much junk...them when they don't get their 4k back each year they gripe. Of course they want that large check to go buy a big screen.

Im really not as cold hearted as it sounds. I just don't like to keep doing things the same way when it suckks and when a new idea is out there the concern is more about the few instead of the many. There has to be a better way.

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I do agree with most if not all in this post, not sure just how we separate the needy from the users though... We do need to do a better job of that.. The only place we differ is how much damage the welfare system is doing to our country, with 12% of the budget going in that direction and I'm sure most of that goes to the folks who actually need it (you and I likely disagree on that) if we did away with the entire thing we would still have a budget nightmare although it would be less of a nightmare but would likely cause us a whole new set of problems.

[GeoFisher]

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. It just seems to me if half the people, as Mr. Romney says, pay no taxes, then our system must be saying these folks are in a financial condition where they can't afford to pay taxes,

Never Mind.....

IGNORANCE on the left is bliss.........

Later,

Geo

[Hlleonard]

Never Mind.....

IGNORANCE on the left is bliss.........

Later,

Geo

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lol... you have a good evening sir.