Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

ml, I would agree with a "flat tax", if t included the 15% taxes paid now as social security (but to a limit of some $75,000 or so). Right now, the marginal tax rate of a small independent making about, $100,000 a year is close to 50%, while Bill Gate pays a marginal tax of between 10% to 20%. That is definitely unfair.

As for ardent's suggestions that corporations pay no taxes, it is by itself a loophole. It used to be (in the 60%) that corporation contributed close to 35% of the IRS revenues, now it is around 18%. Ask yourself why. The marginal tax rate on the "Rich" was some 70% or so, none of the "Rich" paid it, they incorporated and paid the rate of 40%, so more IRS revenues were classified as "Corporate". Now that the marginal rates are 35% for corporations and about 36% to 39.6% for individuals (not counting FICA), there is not much of an incentive to incorporate to avoid taxes and thus more of the total IRS intake is from individuals.

Going to no taxes on corporation will result in 70% of the population incorporating and paying no taxes.

Zeev