News Focus
News Focus
icon url

StephanieVanbryce

05/26/11 12:39 PM

#141266 RE: Alex G #141264

In California they are blocking everything ..Jerry Brown has made bodacious cuts angering everyone ..but cutting spending is not the ONLY problem and it doesn't fix our deficit .. but they don't care ..I'm not kidding Grover was walking around inside of our state capital .. whipping his bitches to make sure .. NO Tax increases .. not even renewing the ones we had temporarily .

They just ruin everything..you want Progress? don't ask them!
icon url

fuagf

05/26/11 10:11 PM

#141312 RE: Alex G #141264

A flat tax has never felt a good idea, and skimming this wik article doesn't change that
.. also the ones who are pushing it puts it into dark energy for me .. excerpt (ref nos left) ..

Eastern Europe


B ..Countries that have flat taxes
G .. Countries considering flat taxes

Advocates of the flat tax argue that the former-Communist states of Eastern Europe have benefited from the adoption of a flat tax. Most of these nations have experienced strong economic growth of 6% and higher in recent years, some of them, particularly the Baltic countries, experience exceptional GDP growth of around 10% yearly, although this growth cannot be definitely linked to the tax structure. Other factors, primarily the advent of capitalist economic systems and rapid market expansion after Soviet (communist) domination explain the rapid growth. Economic growth in these countries would likely have occurred regardless of the chosen tax system. The starting point for these economies was so low that even slight numerical improvements equate to large growth when expressed as a percentage.

* Whilst in some countries the introduction of a flat tax has coincided with strong increases in growth and tax revenue, there is no proven causal link between the two. For example, it is also possible that both are due to a third factor, such as new government that may institute other reforms along with the flat tax.

[WHICH THE FLAT TAX BRIGADE CONVENIENTLY LEAVE OUT OF THEIR DEBATE.]

* Lithuania, which levies a flat tax rate of 24% (previously 27%) on its citizens, has experienced amongst the fastest growth in Europe. Advocates of the flat tax speak of this country's declining unemployment and rising standard of living. They also state that tax revenues have increased following the adoption of the flat tax, due to a subsequent decline in tax evasion and the Laffer curve effect. Others point out, however, that Lithuanian unemployment is falling at least partly as a result of mass emigration to Western Europe. The argument is that Lithuania's comparatively very low wages, on which a non-progressive flat tax is levied, combined with the possibility now to work legally in Western Europe since accession to the European Union, is forcing people to leave the country en masse. The Ministry of Labour estimated in 2004 that as many as 360,000 workers might have left the country by the end of that year, a prediction that is now thought to have been broadly accurate. The impact is already evident: in September 2004, the Lithuanian Trucking Association reported a shortage of 3,000-4,000 truck drivers. Large retail stores have also reported some difficulty in filling positions.[27] However, the emigration trend has recently stopped[citation needed] as enormous real wage gains in Lithuania (presumably due to the shortage of workers) have caused a return of many migrants from Western Europe. In addition to that, it is clear that countries not levying a flat tax such as Poland also temporarily faced large waves of emigration after EU membership in 2004.[citation needed]

* In Estonia, which has had a 26% (24% in 2005, 23% in 2006, 22% in 2007, 21% in 2008, 21% in 2009, planned 20% in 2010, 19% in 2011, 18% in 2012) flat tax rate since 1994, studies have shown that the significant increase in tax revenue experienced was caused partly by a disproportionately rising VAT revenue.[28] Moreover, Estonia and Slovakia have high social contributions, pegged to wage levels.[28] Both matters raise questions regarding the justice of the flat tax system, and thus its long-term political sustainability.[citation needed] The Estonian economist and former chairman of his country's parliamentary budget committee Olev Raju, stated in September 2005 that "income disparities are rising and calls for a progressive system of taxation are getting louder - this could put an end to the flat tax after the next election" [25]. However, this did not happen, since after the 2007 elections a right-wing coalition was formed which has stated its will to keep the flat tax in existence. However, critics argue that the tax rates these countries have are actually more progressive than flat.[29]

* Hungary introduced a flax tax at 16% on 1 January 2011.[30]

* According to a 2010 study[31] published in the Brussels newspaper L'Anglophone, the tax burden for typical workers in Central and Eastern Europe's "flat tax" countries is slightly higher (40.3% versus 40.2% of the total cost of employment) than that of the progressive systems elsewhere in the EU. "Slovakia has a “flat tax” rate of 19%," wrote the authors,[32] "but its employers pay a 35.2% contribution to social security (higher than the 34.8% in Belgium) and, in addition to the flat income tax, employees have 13.4% deducted for social security (also higher than the 13.07% in Belgium)," adding that a typical Slovak worker's Tax Freedom Day is a day later than a Finnish worker's. .. much more ..

http://en.wikipedia.org/wiki/Flat_tax

I've never read the OTHER FACTORS mentioned in there in any conservative argument for the flat tax .. EVER ..

LOL .. it strikes as funny your conservatives proposing something that was introduced by the patriarchs of Russia et al.

No, i'm not putting Eastern Europe down. They have their greedy bastards, too.

ps: maybe the idea does have some merit .. i'm open, but haven't been able to yet lean that way ..