Imagine NO Income Tax

[PismoPam]

I have been taking this flyer to all the small shops and offices in my area. VERY good response!
Oh, and I just print it in black and white, not in color. Looks great.

 

[JJ2]

The only problem is that if we went back to 2000's budget and eliminated the income tax, we would still be borrowing the same amount of money.

 

[deputydon]

The only problem is that if we went back to 2000's budget and eliminated the income tax, we would still be borrowing the same amount of money.

That's why he wants a flat tax of 15% until we can phase the IRS out and get rid of the federal income tax.

 

[ghengis86]

We're halfway there; 50% of the population do not pay income taxes as it is already.

 

[Xenophage]

Eliminating the income tax would do a few interesting things: It would increase the size of the labor market, and increase immigration, thereby lowering wages. People would be willing to work for less when they get to keep more of it. The lowered cost of labor would in turn encourage more job creation, and lower unemployment. More productivity, more consumer wealth to go around... HUGE ECONOMIC BOOM. Unfortunately we would need to see job growth outpace the increase in the size of the job market - but I seriously doubt that would happen as the job market would see tremendous gains. We'd definitely see lowered wages, but a net increase in real wealth and standard of living.

Now imagine coupling that with an elimination of the *corporate* income tax as well.

What do you think of my analysis?

 

[anaconda]

Eliminating the income tax would do a few interesting things: It would increase the size of the labor market, and increase immigration, thereby lowering wages. People would be willing to work for less when they get to keep more of it. The lowered cost of labor would in turn encourage more job creation, and lower unemployment. More productivity, more consumer wealth to go around... HUGE ECONOMIC BOOM. Unfortunately we would need to see job growth outpace the increase in the size of the job market - but I seriously doubt that would happen as the job market would see tremendous gains. We'd definitely see lowered wages, but a net increase in real wealth and standard of living.

Now imagine coupling that with an elimination of the *corporate* income tax as well.

What do you think of my analysis?

Solid.

I believe we would have a huge boom. Some of the public sector would have to quickly adjust to the private sector.

My only small question is regarding your statement "Unfortunately we would need to see job growth outpace the increase in the size of the job market." Not sure what you mean by this. It is my understanding that, in a free market with adjustable real wages and prices, full employment equilibrium is reached. My concern is the potential lack of productive skill sets as we go forward. Otherwise we will have lots of people working for poverty wages or unemployed because their marginal productivity of labor is less than the government imposed minimum wage.

 

[otherone]

Tax capital gains from outsourcing and/or foreign corporations, as well as commodities. Come to think about it, the federal government should be funded from state treasuries. Let the states collect it and fight with DC. And repeal the 14th and 17th amendments. I reserve the right to add to my list of demands.

 

[Shane Harris]

That's why he wants a flat tax of 15% until we can phase the IRS out and get rid of the federal income tax.

where is this? I thought his plan only extended Bush tax cuts