Archive for the ‘Tax reform’ Category

Tax Rebate Passes Congress

Friday, February 8th, 2008

Congress sent a $168 billion economic stimulus package to the President last night for his approval.  The package has good intentions and includes something for just about everyone, unless your “rich” (over $75,000 for singles, $150,000 for couples).

If they are really looking to stimulate the economy though, they ought ask the question, “who is more likely to spend an $1,800 rebate check, someone who already has enough money and can afford to treat themselves with something new, or someone who probably should use that money to save or pay off debt?”.  This makes me really wonder if this is going to work.

Don’t get me wrong. I’m not complaining. I’m looking forward to that rebate check. I just probably won’t be spending it. And if the government wants to put money in the hands of people who will spend it then they probably shouldn’t leave out the so called “rich” Americans who, by the way, contribute most of the taxes anyway and yet when a rebate is dished out they get nothing.

Why wouldn’t the Flat Tax really work?

Thursday, January 24th, 2008

Why wouldn’t the flat tax work?  It sounds like a good idea.  If you are at a point in your life where you are trying to get ahead and save some money you don’t have to worry about the government taking your money before you even get it.  If you wanted to invest your money instead of spending it, the incentive would be there to do that.  It would also remove the discussion about tax brackets.

The greatest part of it all is that it would do away with the complicated tax filing system we now use.

So there are plenty of reasons, in theory, to implement a flat tax system.  So why doesn’t it happen?  Are there studies out there that disprove the the flat tax? Do those currently in power have something to lose?