William Thien

Fairness and The Flat Tax

Posted on: June 11, 2016

One of the greatest myths about a flat tax is that a flat tax unfairly burdens the poor. The argument you will hear is that a flat tax of fifteen percent, for example, on a person making twenty-thousand dollars per year would be $3,000 dollars while the same tax on someone who makes $100,000 per year would be $15,000, and the argument against the flat tax then goes on to suggest that three thousand dollars to the person making twenty-thousand dollars per year means a lot more than $15,000 dollars does to the person making $100,000 per year.

But you never hear the person who makes $20,000 a year complain that such an arrangement would be unfair. I have never heard anyone from that income bracket say they think it is unfair that people pay the same level of taxes at all income levels. Never. Ever!

But you will hear the very wealthy suggest a flat tax is unfair to those earning poverty wages. You would think the very wealthy were looking out for the poor when they make their argument against a flat tax.

The problem with that perspective is that people making middle-income and lower-income wages often pay quite a bit more in taxes as an effective tax rate than the very wealthy. Why? Because those who make such middle and lower-income wages do not have all of the tax loopholes to apply to their income that the very wealthy have when tax time arrives.

While reading the local newspaper today where I reside I came across an article concerning one of the wealthiest women in America, a model self-made woman as described by Forbes Magazine to which the article referenced. The article also revealed that for the last five years the model self-made woman has only paid income taxes during one of those five years.

The self-made woman, a billionaire, must have used umpteen loopholes to avoid paying income taxes for four of those five years, eighty percent of the time she was earning income during the subject period, and while avoiding income taxes it was of course easy to be one of the wealthiest self-made women in America because everyone else was paying the “self-made” woman’s taxes for her while she skated off. How self-made is that?

No wonder there is such a strong sentiment against a flat tax. A flat tax would ensure that people actually pay their fair share. There is, by the way, a component of fairness when it comes to taxation. If you disagree with me, read on.

Now, I do not state here that I favor a flat tax but the scenario I’ve described demonstrates one of the strongest arguments favoring a flat tax.

I am a conservative. I believe in keeping control of taxation. But everyone has to pay taxes if they are earning income. It’s only fair, and the tax code must be fair otherwise it should be subject to the application and exercise of public grievance.

The scenario I have described to you about the woman is by the way really just “socialism.” Such tax loopholes enable people to become what I call “Supersocialists.” The woman has been able through most likely a series of tax loopholes to foist her tax burden on to the public and avoid paying income taxes altogether. And that, ladies and gentlemen, is a redistribution of wealth, socialism, communism, what have you. That’s not capitalism, that’s socialism. We see here then in this example that the tax code has significant socialist structure to it, something I’ve been saying for many years now.

Do not be fooled by the argument that a flat tax unfairly burdens the poor. The poor are the most likely beneficiaries of a flat tax as a flat tax would generate added revenue, that which a substantial portion of the population has quite obviously been able to avoid paying, revenue the country desperately needs.

How someone who is on the Forbes list of wealthiest people in America can go four out of five years without paying any income taxes whatsoever to me indicates the US Tax Code is a criminal act upon the American public.

Copyright © William Thien 2016

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5 Responses to "Fairness and The Flat Tax"

I guess marrying a billionaire who dies and leaves you a widow is some sorta job. That was the women who got caught on tape kissing Walker’s ass.

People who talk about the tax code being fairer and yet do not want a flat tax or a national sales tax are being absurd. Graduated tax rates are economically devastating.

Thank you for your comment. I think a flat tax is the fairest way to distribute the tax burden and it makes everyone equally invested in seeing things are run well. Thanks gain.

Here are a few ideas to start with: 1: End the drug war and legalize, tax and regulate their sale. Take that money and use it to provide rehabilitation services for addicts who want to make a sincere effort to get clean. 2: Abolish the Department of Education. Take that money and incentivize its flow into the pockets of school teachers. 3: Eliminate the Department of Labor. 4: Eliminate the Department of Commerce. 5: End the inheritance tax. Since that money has been taxed when earned, saved, spent and invested, why should it be taxable if you leave that money for future generations? 6: Call for a reduction in pay for members of the legislative branch if they do not do their jobs according to the will of the voters.

I am in agreement with much of what you say with the caveat respecting point number 1. I would only legalize and regulate marijuana were I to do so. Harder drugs would still need to be regulated and restricted. The human condition in The US is rapidly deteriorating. Congress has opened the borders to a huge influx of immigrants and the country’s “carrying capacity” is being stretched to its limits. People are looking for an out and they are turning to hard drugs unfortunately.

The other bureaucracies you mention are redundancies that could be curtailed drastically to relieve the tax burden.

Teachers could use more pay, that’s for sure. Kids today are playing kill games on the computer and cell phones all day long and are becoming extremely difficult to teach I’ve heard teachers say, yet parents are too busy working to pay their taxes that they don’t see what is happening and are still holding school systems to the same standards even though there is this large distraction in the classrooms called personal cell phones now.

Money acquired from the sale of marijuana could be used like it is now in states where is it legalized to purchase new schools, develop rehabilitation programs, new municipal facilities and vehicles, you name it. It’s a huge influx of cash.

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