I agree, however Warren Buffet didn't quite compare apples to apples, He was comparing income taxes, and with all his tax deductions for interest and property taxes, and charitable donations etc., his AGI put him in a lower tax bracket. He had to give away or spend a lot of his money to be able to get the lower tax bracket. His secretary may not be able to afford those kinds of expenses and therefore gets taxed at a higher rate. Doesn't make sense does it. the only way to lower your tax burden is to spend more, give away more or make less...
And Mr. Buffet, pays himself a very small salary compared to what he's worth. if you calculated what he paid in taxes on all his assets, it would most likely be above 30%.
My only problem with our governments tax system is that it should be the same for everyone. My preference is the FairTax, But I'm not necessarily against the flat tax. The system we have now is so convoluted and broken that we the tax payer have lost the ability to hold the Gov accountable for what they are, or, aren't doing with our tax money. The cool thing about the FairTax is it doesn't require spending cuts. They predict that with the fair tax the Gov can continue to spend as much as they spend now, with enough to adequately fund Social Security, Medicare and reduce the Deficit.
Plus, it's based off of what you spend not what you make. So, if you don't make a lot therefore don't spend a lot you don't pay a lot in taxes. Vice versa for the wealthy. They spend therefore they pay. Obviously this is a very simple analogy. But that's the basic premise. No more April 15th. No more death, income, or investment taxes among many others. Sponsored by Senator John Linder.
http://www.fairtax.org
The quote is from a different site.
Quote:
Of the FairTax, Huckabee asserts that it’s…
• SIMPLE, easy to understand
• EFFICIENT, inexpensive to comply with and doesn’t cause less-than-optimal business decisions for tax minimization purposes
• FAIR, FLAT, and FAMILY FRIENDLY, loophole-free, and everyone pays their share
• LOW TAX RATE is achieved by broad base with no exclusions
• PREDICTABLE, doesn’t change, so financial planning is possible
• UNINTRUSIVE, doesn’t intrude into our personal affairs or limit our liberty
• VISIBLE, not hidden from the public in tax-inflated prices or otherwise
• PRODUCTIVE, rewards - rather than penalizes - work and productivity
A detailed benefits analysis of the plan (from The FairTax Book) explains Huckabee’s ardent advocacy:
For INDIVIDUALS:
• No more tax on income - make as much as you wish
• You receive your full paycheck - no more deductions
• You pay the tax when you buy “at retail” - not “used”
• No more double taxation (e.g. like on current Capital Gains)
• Reduction of “pre-FairTaxed” retail prices by 20%-30%
• Adding back 29.9% FairTax maintains current price levels
• FairTax would constitute 23% portion of new prices
• Every household receives a monthly check, or “pre-bate”
• “Prebate” is “advance tax payback” for monthly consumption to poverty level
• FairTax’s “prebate” ensures progressivity, poverty protection
• Finally, citizens are knowledgeable of what their tax IS
• Elimination of “parasitic” Income Tax industry
• NO MORE IRS. NO MORE FILING OF TAX RETURNS by individuals
• Those possessing illicit forms of income will ALSO pay the FairTax
• Households have more disposable income to purchase goods
• Savings is bolstered with reduction of interest rates
For BUSINESSES:
• Corporate income and payroll taxes revoked under FairTax
• Business compensated for collecting tax at “cash register”
• No more tax-related lawyers, lobbyists on company payrolls
• No more embedded (hidden) income/payroll taxes in prices
• Reduced costs. Competition - not tax policy - drives prices
• Off-shore “tax haven” headquarters can now return to U.S
• No more “favors” from politicians at expense of taxpayers
• Resources go to R&D and study of competition - not taxes
• Global “free (and equitable) trade” becomes possible for currently-disadvanted ( http://snipurl.com/tradeinequity ) U.S. exports
• US exports increase their share of foreign markets
For THE COUNTRY:
• 7% - 13% economic growth projected in the first year of the FairTax
• Jobs return to the U.S.
• Foreign corporations “set up shop” in the U.S.
• Tax system trends are corrected to “enlarge the pie”
• Larger economic “pie,” means thinner tax rate “slices”
• Initial 23% portion of price is pressured downward as “pie” increases
• No more “closed door” tax deals by politicians and business
• FairTax sets new global standard. Other countries will follow
|
Sorry for the hijack.