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Originally Posted by tarcone
I think there would be a big raise in taxes. Which brings up the IRS tax code.
Why is that so large? Oh yeah to protect the rich.
We need to go to a straight tax rate for all. Not on income but earnings.
20% across the board? 15%? nothing less than that.
Then you help everyone. And the rich dont get away with the shenanigans.
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This is a good, specific proposal, but also a good example of how things really aren't that simple in reality. The tax code is large for a lot of reasons, and protecting the rich is only part of why.
It's also there to protect the poor. People who have very little and can't afford it would get squeezed by this. That means you either need a lot more from others to help them or you are ok with taking away some of what little they have. Taxing all earnings would depress investment. That makes the economy less agile when dealing with shifting market realities, that everybody with a retirement account, college fund for their children, etc. is now going to see those grow a lot slower. Jobs for everyone, including the middle class get created slower along with a myriad of other such ripple effects. This is all without getting into the part where a lot of people think part of fairness is having the poor pay less and the rich pay more. These kinds of considerations are all a significant part of why the tax code is complex.