Taxation

[David S]

In my opinion a tax system which causes equal agony to everyone is the fairest. Then everyone has an incentive to see government be as frugal as possible with the tax dollar. Of the two choices I pick flat tax, although many of the flat tax proposals have very high deductables which defeat the "equal agony" concept.

[David S]

Our current system creates reverse incentives. It rewards failure and punishes success. If you are not working and have no income government gives you free medical care via Medicaid and food stamps as well. On the other hand if you work hard to achieve success government punishes you by taxing the hell out of you and you cannot get medicaid or food stamps either.

Also, at a time when perhaps people should be thinking about having smaller families, government rewards you for having bigger families by giving exemptions for dependents.

A truly flat tax system would tax every dollar of income from the first to the last at the same rate. It would largely eliminate the need for filing taxes. The amount withheld from your paycheck would be the exact amount you owe on your wages. Similarly taxes on dividends and interest could be withheld by the payor, so there would be no need to file. The only hiccup would be capital gains which would still be a pain in the neck. I would prefer not taxing capital gains.

[David S]

Flat tax-at 0%

What was I thinking?  Of course you are right!!!