Quote Originally Posted by Hlleonard View Post
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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.