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	<title>Comments on: Question of the Day</title>
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	<description>A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance.</description>
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		<title>By: samerwriter</title>
		<link>http://allfinancialmatters.com/2006/09/07/question-of-the-day/comment-page-1/#comment-24823</link>
		<dc:creator>samerwriter</dc:creator>
		<pubDate>Mon, 11 Sep 2006 03:18:43 +0000</pubDate>
		<guid isPermaLink="false">http://allthingsfinancialblog.com/2006/09/07/question-of-the-day/#comment-24823</guid>
		<description>A flat tax is more fair than the current progressive tax, but the most &quot;fair&quot; tax is a regressive tax.

Would it be fair for someone who makes $100,000 per year to pay $4 for a gallon of milk while someone who makes $25,000 per year only pays $1 for the same gallon at the same store? Surely not.

However, I&#039;d certainly support a flat percentage tax as a far better solution than our current tax code, which explicitly punishes productivity, by discouraging our most productive workers from working extra hours.</description>
		<content:encoded><![CDATA[<p>A flat tax is more fair than the current progressive tax, but the most &#8220;fair&#8221; tax is a regressive tax.</p>
<p>Would it be fair for someone who makes $100,000 per year to pay $4 for a gallon of milk while someone who makes $25,000 per year only pays $1 for the same gallon at the same store? Surely not.</p>
<p>However, I&#8217;d certainly support a flat percentage tax as a far better solution than our current tax code, which explicitly punishes productivity, by discouraging our most productive workers from working extra hours.</p>
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		<title>By: tired-of-being-broke</title>
		<link>http://allfinancialmatters.com/2006/09/07/question-of-the-day/comment-page-1/#comment-24547</link>
		<dc:creator>tired-of-being-broke</dc:creator>
		<pubDate>Sat, 09 Sep 2006 14:32:38 +0000</pubDate>
		<guid isPermaLink="false">http://allthingsfinancialblog.com/2006/09/07/question-of-the-day/#comment-24547</guid>
		<description>The comment about &#039;poor&#039; people receiving more in benefits is just plain incorrect. Where are the facts to back up that statement? What percentage of the federal, state or local municipality budget that goes to these &#039;poor&#039; people?</description>
		<content:encoded><![CDATA[<p>The comment about &#8216;poor&#8217; people receiving more in benefits is just plain incorrect. Where are the facts to back up that statement? What percentage of the federal, state or local municipality budget that goes to these &#8216;poor&#8217; people?</p>
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		<title>By: M Schoon</title>
		<link>http://allfinancialmatters.com/2006/09/07/question-of-the-day/comment-page-1/#comment-24374</link>
		<dc:creator>M Schoon</dc:creator>
		<pubDate>Fri, 08 Sep 2006 18:12:17 +0000</pubDate>
		<guid isPermaLink="false">http://allthingsfinancialblog.com/2006/09/07/question-of-the-day/#comment-24374</guid>
		<description>I am in favor of the Fair Tax.  It is more fair than any of the proposed flat tax systems.  It also solves a lot of the problems that are being argued here.  As mentioned earlier check out fairtax.org for a complete description.</description>
		<content:encoded><![CDATA[<p>I am in favor of the Fair Tax.  It is more fair than any of the proposed flat tax systems.  It also solves a lot of the problems that are being argued here.  As mentioned earlier check out fairtax.org for a complete description.</p>
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		<title>By: Wolf</title>
		<link>http://allfinancialmatters.com/2006/09/07/question-of-the-day/comment-page-1/#comment-24365</link>
		<dc:creator>Wolf</dc:creator>
		<pubDate>Fri, 08 Sep 2006 16:26:30 +0000</pubDate>
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		<description>There is a german saying: the devil always sh**s on the biggest pile, meaning that the wealthy tend to get more wealthy over time.  I belive that census data confirms that.  A progressive tax provides a counter balance to this natural tendency.  The real inefficiencies in the tax system are caused by gross overregulation, which is a result of congressional pandering to various groups (be they the wealthy, the middle class, or the poor), and by the use of tax brackets.  In my mind, an ideal system would have a smooth, mildly progressive tax curve (i.e. increasing tax percentage with increasing income), exemptions for household members, and the greater of a standard deduction or mortgage intrest deduciton and no other deductions.  All income (passive or earned; from small business,...) should be treated equally.  Federal deficits should only be allowed in the short term.

Another argument against flat tax (in my mind) is that the greater income/wealth comes with greated responsibility.

I could probably be persuaded that a sales tax/VAT that excludes food items or has some sort of exemption to cover living expenses so as to not disproportionally hurt low income families is not a bad solution.</description>
		<content:encoded><![CDATA[<p>There is a german saying: the devil always sh**s on the biggest pile, meaning that the wealthy tend to get more wealthy over time.  I belive that census data confirms that.  A progressive tax provides a counter balance to this natural tendency.  The real inefficiencies in the tax system are caused by gross overregulation, which is a result of congressional pandering to various groups (be they the wealthy, the middle class, or the poor), and by the use of tax brackets.  In my mind, an ideal system would have a smooth, mildly progressive tax curve (i.e. increasing tax percentage with increasing income), exemptions for household members, and the greater of a standard deduction or mortgage intrest deduciton and no other deductions.  All income (passive or earned; from small business,&#8230;) should be treated equally.  Federal deficits should only be allowed in the short term.</p>
<p>Another argument against flat tax (in my mind) is that the greater income/wealth comes with greated responsibility.</p>
<p>I could probably be persuaded that a sales tax/VAT that excludes food items or has some sort of exemption to cover living expenses so as to not disproportionally hurt low income families is not a bad solution.</p>
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		<title>By: JLP</title>
		<link>http://allfinancialmatters.com/2006/09/07/question-of-the-day/comment-page-1/#comment-24354</link>
		<dc:creator>JLP</dc:creator>
		<pubDate>Fri, 08 Sep 2006 15:20:03 +0000</pubDate>
		<guid isPermaLink="false">http://allthingsfinancialblog.com/2006/09/07/question-of-the-day/#comment-24354</guid>
		<description>John M.

Thanks for the comment.

Why must we have to redistribute wealth?  The fact that we must continually redistribute wealth should tell us that it doesn&#039;t work, right?</description>
		<content:encoded><![CDATA[<p>John M.</p>
<p>Thanks for the comment.</p>
<p>Why must we have to redistribute wealth?  The fact that we must continually redistribute wealth should tell us that it doesn&#8217;t work, right?</p>
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		<title>By: John M</title>
		<link>http://allfinancialmatters.com/2006/09/07/question-of-the-day/comment-page-1/#comment-24352</link>
		<dc:creator>John M</dc:creator>
		<pubDate>Fri, 08 Sep 2006 15:04:54 +0000</pubDate>
		<guid isPermaLink="false">http://allthingsfinancialblog.com/2006/09/07/question-of-the-day/#comment-24352</guid>
		<description>A Flat Tax makes sense if you believe that the only purpose of taxes is to pay for government services. (Defense, Schools, Public Works, Infrastructure, etc.) Everyone should pay an equal percentage of their income in order to fund government services.

The conversation gets complicated when we debate over the other main purpose of taxes.

Redistribution of Wealth - I personally think that taxes CAN BE effective in the redistribution of wealth. I believe that wealthier citizens have an increased obligation to make sure that the working poor have a reasonable standard of living. People will argue that it is more effective to let wealthier people invest in business and that will increase the standard of living of everyone. While this may be true, I believe that it is our nature to achieve as much wealth as possible and that without a system to redistribute wealth the working poor will have living condition that society finds unacceptable.</description>
		<content:encoded><![CDATA[<p>A Flat Tax makes sense if you believe that the only purpose of taxes is to pay for government services. (Defense, Schools, Public Works, Infrastructure, etc.) Everyone should pay an equal percentage of their income in order to fund government services.</p>
<p>The conversation gets complicated when we debate over the other main purpose of taxes.</p>
<p>Redistribution of Wealth &#8211; I personally think that taxes CAN BE effective in the redistribution of wealth. I believe that wealthier citizens have an increased obligation to make sure that the working poor have a reasonable standard of living. People will argue that it is more effective to let wealthier people invest in business and that will increase the standard of living of everyone. While this may be true, I believe that it is our nature to achieve as much wealth as possible and that without a system to redistribute wealth the working poor will have living condition that society finds unacceptable.</p>
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		<title>By: S/100/30</title>
		<link>http://allfinancialmatters.com/2006/09/07/question-of-the-day/comment-page-1/#comment-24293</link>
		<dc:creator>S/100/30</dc:creator>
		<pubDate>Fri, 08 Sep 2006 04:18:43 +0000</pubDate>
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		<description>&lt;i&gt;How would a flat tax ever be immoral and unfair? I think if anything it would prompt those who are making $30,000 to try to make more so they have more in their pocket. The current system (Canadian or American) is flawed and unfair to everyone mostly because of the huge costly bureaucracy that it causes.&lt;/i&gt;

That last sentence is orthogonal. Yes, a sprawling, complicated tax system costs money. No, a sprawling, complicated tax system is not inherent or limited to a progressive tax system.

A progressive tax system isn&#039;t inherently complicated; it&#039;s complicated because of the amount of deductions and exceptions the legislature has built in. A flat tax could easily become just as complicated, and most likely would as taxes are one of the few ways the government can encourage desired behavior (e.g. home ownership).

Establishing fairness is about more than just stating it or drawing an analogy to religion.

&lt;i&gt;A flat tax is fair, especially when you consider that most “poor” people pay less in taxes to the Government than the rich, yet they receive more benefits from the Government (welfare, food stamps, etc.)&lt;/i&gt;

This is, in fact, flat-out wrong. You&#039;re confusing direct benefits with overall government spending; the former is a small fraction of the latter, and the latter is primarily about protecting private wealth, which benefits one in proportion to the amount of wealth she possesses.</description>
		<content:encoded><![CDATA[<p><i>How would a flat tax ever be immoral and unfair? I think if anything it would prompt those who are making $30,000 to try to make more so they have more in their pocket. The current system (Canadian or American) is flawed and unfair to everyone mostly because of the huge costly bureaucracy that it causes.</i></p>
<p>That last sentence is orthogonal. Yes, a sprawling, complicated tax system costs money. No, a sprawling, complicated tax system is not inherent or limited to a progressive tax system.</p>
<p>A progressive tax system isn&#8217;t inherently complicated; it&#8217;s complicated because of the amount of deductions and exceptions the legislature has built in. A flat tax could easily become just as complicated, and most likely would as taxes are one of the few ways the government can encourage desired behavior (e.g. home ownership).</p>
<p>Establishing fairness is about more than just stating it or drawing an analogy to religion.</p>
<p><i>A flat tax is fair, especially when you consider that most “poor” people pay less in taxes to the Government than the rich, yet they receive more benefits from the Government (welfare, food stamps, etc.)</i></p>
<p>This is, in fact, flat-out wrong. You&#8217;re confusing direct benefits with overall government spending; the former is a small fraction of the latter, and the latter is primarily about protecting private wealth, which benefits one in proportion to the amount of wealth she possesses.</p>
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		<title>By: Brian Carr</title>
		<link>http://allfinancialmatters.com/2006/09/07/question-of-the-day/comment-page-1/#comment-24283</link>
		<dc:creator>Brian Carr</dc:creator>
		<pubDate>Fri, 08 Sep 2006 02:29:56 +0000</pubDate>
		<guid isPermaLink="false">http://allthingsfinancialblog.com/2006/09/07/question-of-the-day/#comment-24283</guid>
		<description>A flat tax is fair, especially when you consider that most &quot;poor&quot; people pay less in taxes to the Government than the rich, yet they receive more benefits from the Government (welfare, food stamps, etc.)</description>
		<content:encoded><![CDATA[<p>A flat tax is fair, especially when you consider that most &#8220;poor&#8221; people pay less in taxes to the Government than the rich, yet they receive more benefits from the Government (welfare, food stamps, etc.)</p>
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		<title>By: Matt</title>
		<link>http://allfinancialmatters.com/2006/09/07/question-of-the-day/comment-page-1/#comment-24282</link>
		<dc:creator>Matt</dc:creator>
		<pubDate>Fri, 08 Sep 2006 02:20:44 +0000</pubDate>
		<guid isPermaLink="false">http://allthingsfinancialblog.com/2006/09/07/question-of-the-day/#comment-24282</guid>
		<description>How would a flat tax ever be immoral and unfair? I think if anything it would prompt those who are making $30,000 to try to make more so they have more in their pocket. The current system (Canadian or American) is flawed and unfair to everyone mostly because of the huge costly bureaucracy that it causes.</description>
		<content:encoded><![CDATA[<p>How would a flat tax ever be immoral and unfair? I think if anything it would prompt those who are making $30,000 to try to make more so they have more in their pocket. The current system (Canadian or American) is flawed and unfair to everyone mostly because of the huge costly bureaucracy that it causes.</p>
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		<title>By: JLP</title>
		<link>http://allfinancialmatters.com/2006/09/07/question-of-the-day/comment-page-1/#comment-24280</link>
		<dc:creator>JLP</dc:creator>
		<pubDate>Fri, 08 Sep 2006 01:40:25 +0000</pubDate>
		<guid isPermaLink="false">http://allthingsfinancialblog.com/2006/09/07/question-of-the-day/#comment-24280</guid>
		<description>S/100/30,

Flat taxes are immoral and unfair?  I respectfully disagree.  I don&#039;t see anything immoral in asking everyone to pay their fair share.  I look at it like tithing.  Tithing, which represents 10% of your income, is paid by all those who have agreed to tithe, whether they make $10,000 per year or $1,000,000 per year.

As long as EVERYONE is paying the same percentage, then the flat tax is the most MORAL tax.</description>
		<content:encoded><![CDATA[<p>S/100/30,</p>
<p>Flat taxes are immoral and unfair?  I respectfully disagree.  I don&#8217;t see anything immoral in asking everyone to pay their fair share.  I look at it like tithing.  Tithing, which represents 10% of your income, is paid by all those who have agreed to tithe, whether they make $10,000 per year or $1,000,000 per year.</p>
<p>As long as EVERYONE is paying the same percentage, then the flat tax is the most MORAL tax.</p>
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