Flat tax only if SS cap is abolished

[ErikJ]

Mybe we sghould make a deal with the Republicans that we adopt a flat-tax only under the condition that the Social Security/Payroll tax cap, (currently only $106,000) is abolished. Fair is fair.

[Raven]

1. No such thing as making a deal with Republicans. n/t

[ErikJ]

19. I think we need to go back to Eisenhower rates of 90%

But the GOP drumbeat is "Fair-tax" Flat-tax etc which is gaining ground. We should counter that we need to abolish the SS cap to slap them back to reality.

[BadgerKid]

2. A clean definition of "income" is needed.

For all we know, "income" is just "wages," not capital gains, interest income, dividends, etc.

[Vincardog]

3. Only if income = all income (Stock options, capital gains, inheritance, bonds)

[dmallind]

4. Agreed. While not ideal, a flat tax could be OK with two caveats

1) a minimum amount before it kicks in

2) inclusion of ALL income - not just pay and capital gains even but inheritance, gifts, perks that replace expenses (company cars etc), and so on. Anything that comes from any other individual or organization and either gives you $1 more or replaces $1 you would spend.

[TheKentuckian]

5. No, I suggest they find a dark corner in hell and sit and spin there until such time

as they decided to be civilized.

[NYC_SKP]

6. No Deal. No Flat Tax AND Kill the Cap.

We got the numbers, just need the courage to take action.

The 1% is not going to just give us what we want.

We have to take it.

[sinkingfeeling]

7. No thanks to any flat tax.

[Warpy]

8. No flat tax. Abolish the SS cap to give them the flat tax they say they want

and make it applicable to all income, including that hedge fund income gained through gaming the system and claiming capital gains. The tax on unearned income would not need to be matched, it would stay at the Reagan rate as though they'd actually worked for the money.

There are no deductions to the payroll tax, ever.

My guess is that the wealthy would start squealing like stuck pigs in no time at all and completely forget the silly idea of a cruel tax on marginal workers that would be a bonanza to them.

And the payroll tax would only be 6.2%, not that brutal 23%-30% a flat tax would skim off subsistence income, devastating the consumer economy while keeping workers hungry and watching their kids go hungry.

Flat taxes are for people who don't know how to do math or do know how to do math and want to punish poor people for being poor. It's an evil system.

[ErikJ]

10. Good points

"Abolish the SS cap to give them the flat tax they say they want"
-good one, I've thought that too! Dems need to use it as a talking point.

[aquart]

9. NO FLAT TAX!

It's 99% suicide.

[ErikJ]

11. Not if you're rich

The top tax rate is 35% now and the flat tax would be anywhere from 9% to Perry's new 20% flat tax. So even a 5th grader could see how the rich Republicans would love it.

[bowens43]

12. nonsense.

flat tax is another give away to the wealthy and another attack on the poor and middle class.

there is nothing fair about a flat tax. We need to remove the cap AND increase the percentage of income tax paid by the wealthy.

[dtexdem]

13. Bullshit. Abolish the cap. Reject the flat tax.

The cap needs to be removed because of the shift upward in the distribution of income in the past quarter century. To accept tax policies that further shift the distribution of after-tax income is not the answer, even if higher incomes incur higher payroll taxes.

[closeupready]

14. +1000.

Thread unrecced.

[A-Schwarzenegger]

15. Mybe we sghould't.

[shraby]

16. Still not fair.

[Nye Bevan]

17. Would you also abolish the cap on SS benefits?

Right now, benefits are capped because contributions are capped. If you removed the cap on contributions would you also remove the cap on benefits?

[ErikJ]

18. Probably. I never hear about the benefit distribution amounts

I know Thom Hartmann and Bernie Sanders say we need to abolish the cap but I dont recall what they said about benefits. I think Hartmann doesnt want bennies correlated to wealth because then the GOP would say its a welfare program.

[Nye Bevan]

20. The issue then is that very rich people will get hundreds of thousands a month

in social security benefits. Not an economic problem as their higher contributions would cover it, but it could be a political issue.