Subject: Flat Tax vs NESARA
Comment: The Flat Tax vs The National Economic Stabilization and Recovery Act (NESARA)
Practically speaking, the flat tax solves few problems.
Currently many Americans pay as much as 33% or more in cumulative taxes because tax rates vary for each individual based on income brackets, exemptions and a complex system of tax codes. The flat tax proposal would create a single flat rate tax fixed at 17% that would be the same rate for all Americans. Most Americans would see this as a reduction in tax rate as the national average is currently 22%.
- Individuals would be initially taxed at a flat rate of 17%.
- Somewhat reduces the tax rate for many Americans.
- Eliminates double taxation.
- Simplifies tax preparation. Corporations and individuals would be able to file their returns on a postcard-size tax form.
- Encourages savings as individuals would no longer pay tax on income from savings, capital gains, and interest income.
- Reduces IRS staff and overhead and simplifies tax preparation.
- Corporations would be allowed to expense all their investments—no more complex depreciations.
- Taxable income is redefined as total income minus savings and investments minus a threshold income. The typical family threshold income is $36,800.
- Under this plan nearly half of all households would pay no federal income tax.
- Greatly reduces the cost of compliance by an estimated 90%.
- Would not eliminate the IRS.
- Would not eliminate the paper work or paper trails or intrusions on privacy.
- Eliminates deductions or credits for charitable donations.
- Corporations could deduct all wages and salaries, but benefits like social security, health or life insurance would no longer be tax exempt.
- Corporations would no longer be able to deduct interest payments on debt.
- There’s still paper work involved, many hours of unproductive labor to support the process, there’s still a rogue IRS on the loose, there is still intrusion of privacy, there is still taxation on production rather than consumption, and with a flat tax there is still an unsound money system. The Flat Tax supposedly reduces the unproductive labor and paper work involved with compliance, but in the end, the Flat Tax is still an immoral and intrusive income tax.
The Flat Tax provides no provisions to resolve the root problem, an unsound money system. Tax reform is a good start, but ultimately futile without monetary reform. NESARA solves both problems.
This response to the Flat Tax is taken from the NESARA Institute: http://nesara.org/comparisons/flat_tax.htm
A copy of the National Economic Stabilization and Recovery Act draft proposal can be found here: http://nesara.org/bill/index.htm
Discussion regarding NESARA and other tax and monetary reform proposals can be found here:
NESARA Discussion Board