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Pete Ashdown on Tax Reform

 


Supports flat tax starting at $20,000 in income

Conservatives espouse the flat-tax or consumption-based taxes which liberals decry as foul due to exemptions and loopholes. Instead, I propose a "true" flat-tax, one that carries no exemptions, deductions, or loopholes. If you have a "true" flat-tax, there is no need for individual collection or refunds on salaried wage earners. Instead, businesses send checks to the IRS for a percentage of all salaried wages, income, and dividends. The simplification of the IRS could then turn resources to enforcement.

I think one exemption is necessary and that is a low-income exemption. If the bar is put at salaries below $20,000 a year, then people who would otherwise see their taxes returned in round-about wasteful government services, can use that money as they see fit. Although if someone is working multiple low-income jobs, they hit a form of loophole, I would rather see a loophole working for the poorest of Americans than the most wealthy.

Source: Campaign website, peteashdown.org, "Issues" Jun 21, 2006

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