Symposium 2011: should we repeal the federal income tax? If we were to do so, how would we fund the federal government?

Sydney:  No. This is a stupid idea. The nation is massively in debt as it is and I can’t see how there is any we that we could make enough changes, or introduce enough new taxes to rescue a Government that is massively in debt as it is. If anything rich people should be paying more in income tax.

 

If you really wanted to repeal the Federal income tax a few alternatives might include increasing the Corporations Tax, especially for very large corporations, and imposing a tax on all Goods and Services (like England’s VAT). At the same time we would need to massively reduce the size of Government and spending.

 

Michigan:  Yes, let’s go with a flat tax or consumption tax.  Move all those displaced IRS employees into Medicare, Medicaid, or welfare fraud auditing.

 

RMC:  Yes.  Let’s get rid of the federal income tax and go to some sort of consumption tax like the fair tax.  The great aspect of the consumption tax is that it brings people who may not have been paying taxes otherwise onto the tax roster.  Illegals, for example, who haven’t been paying taxes couldn’t avoid a consumption tax.  Cash based employees who otherwise may not be paying taxes wouldn’t be able to avoid it.  Additionally, whoever spends the most, pays the most.

 

A lot of people aren’t going to like it because it eliminates deductions that are available on personal income taxes and it makes people who otherwise aren’t paying taxes pay their fair share.  But let’s face it, the current system is complex and convoluted with too many loopholes and ways to cheat, and it’s a sad reflection on the system when more people are afraid of being audited than of being mugged.

 

Cartwright:  Let’s scrap the entire tax code and go with a consumption tax.  We’ve talked about the fair tax extensively.  It’s a great, bold plan that I think would be absolutely positive for the economy and job creation.  You remove a huge incentive for businesses to keep profits overseas, so once the tax code is replaced with a consumption tax, you’ll see a repatriation of hundreds of billions of dollars.  Think that will get the economy going?

 

You know, the Democrats want to talk about certain people paying their fair share, so how can they argue against the fair tax?  The more you spend, the more you pay.  If you save your money, all the better; you don’t pay anything on what you earn and save.  Of course, the fair tax includes exclusions for certain necessities that even people who don’t currently pay taxes need.  People have to eat, so groceries are excluded.  But, if you need a new, state-of-the-art cell phone, you’re going to pay taxes.  Seems pretty fair to me.  Doesn’t matter who you are, you can’t avoid taxes on what you consume.

 

As an added bonus, the fair tax would bring in billions of dollars in tax revenue currently being lost in the underground economy or people not paying income taxes either because they’re just not filing or because they’re illegal.

 

If you can’t see that this is the way we need to go or if you think the existing tax code is better than the fair tax or some variation of the fair tax, you probably don’t have a brain.

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