Sunday, June 7, 2009

Governator Suggests Flat Tax

The L.A. Times reported just the other day that Governor Arnold Schwarznegger (R) has mulled over the idea of a flat tax. Is that a choir of angels I hear over the state of California?

The idea of a flat tax is nothing new. Steve Forbes and Jerry Brown both pushed for a flat rate income tax in their bids for the presidency. The argument the left gives against the flat tax is a simple one: "The wealthy will be taxed at the same rate as the middle class." Let's look at this for a minute.

Yes, the wealthy would pay the same percentage of tax as everyone else, but even 15% of their millions and billions would be a bigger monetary AMOUNT than what your average worker would pay. And paying the flat percentage rate would eliminate tax deductions and other loopholes they could use to skirt paying taxes. With all the deductions allowed, I would venture a guess to say that the wealthy pay a lesser percentage now.

Think of how simple tax time would be. Figure 15% of your income: that's it. No long forms, no need for tax consultants, no headaches. Half and hour and you're done (if that long).

I hope the state of California sets a precedent for the rest of us. It's an idea long overdue in implementation.

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