Comments on: Americans Say Taxes Worse than Trip to Dentist

By: James Joyner

James Joyner — Tue, 12 Apr 2005 20:15:28 +0000

Rick: Read the flippin' post.

By: Rick DeMent

Rick DeMent — Tue, 12 Apr 2005 19:52:07 +0000

James seems to be under the quaint illusion that a flat-tax would be magically immune to all of the same distortions as a progressive tax. There is no reason whatsoever that the current tax system could not simply make all income taxable and lower the overall marginal rates while maintaining progressivity.

The flat tax will be pretty much the same after an Armey of lobbyists for this kind of income or that kind gets done with it.

By: JakeV

JakeV — Tue, 12 Apr 2005 19:31:44 +0000

James-- Couldn't we make all income taxable income while retaining progressivity? That is, eliminate deductions and exemptions, but still have tax rate depend on income bracket?

Sorry if I'm being obtuse here-- I don't know much about taxation, but I don't see the connection between flatness and simplicity.

By: John Thacker

John Thacker — Tue, 12 Apr 2005 18:17:05 +0000

Of course, if we wait long enough, the non-indexed AMT will impose a flat tax by stealth on nearly everyone.

By: Kapitalismo

Kapitalismo — Tue, 12 Apr 2005 15:57:26 +0000

The Tax Nightmare
OTB found an interesting poll that suggested that 70% of Americans feel that the tax system is too complicated, yet a small majority are willing to commit to changing it. As someone who begins his taxes with religious fervor on...

By: James Joyner

James Joyner — Tue, 12 Apr 2005 15:41:38 +0000

JakeV: A flat tax would change is because ALL income would be TAXABLE income. The reason they're different is because of all the deductions and exemptions.

Hal: The first sentence of the excerpt and the entire last paragraph deal with that point. People want simplicity and yet they want government to subsidize them. You can have one or the other.

By: JakeV

JakeV — Tue, 12 Apr 2005 15:31:46 +0000

I have never understood the idea that the flat tax is simple. Figuring out how much tax to pay based on your income is incredibly simple. You flip to the back of the book, find your taxable income, and read the number. Not complicated.

The thing that's not simple is figuring out your taxable income. How would a flat tax change this?

By: BigFire

BigFire — Tue, 12 Apr 2005 15:08:30 +0000

Seeing that I'm the poster boy for IRS's BOHA (Single, no dependent, no mortgage, no write-offs), my taxes are surprisingly easy to do (2 hours with TaxCut). Of course, my payment to Uncle Sam and the Governator increases every single year.

By: Hal

Hal — Tue, 12 Apr 2005 14:50:43 +0000

And of course you neglected the most entertaining bit of this poll. That being, despite preparing taxes being worse than the dentist, the flat tax - i.e. the "simple tax" is DOA.

Most people don't like the flat tax idea, with 57 percent of those surveyed saying people with higher incomes should pay a higher tax rate. Only 40 percent thought tax rates should be the same for everyone.

Ooops.