I realize it's a good start at a much needed overhaul... but it's got some serious additional tax expenses for the families of four living on $50k a year, of which there are millions... even with that 6.5% given back to the employee. The news report factored this in when they said the family would pay $5k or more per year in taxes (inclusive of the national sales tax placed on all purchased items on top of state sales taxes charged) considering the model does away with the dependent exemptions in the current model.
This is the problem with flat tax models. There's no way to keep the model simple
and fair.
Then, one has to consider the impact implementing a flat tax model will have on a huge sector of business... the hundreds of thousands of tax accountants who would be out of work when everything became so simple anyone could file taxes.
I'm not saying we should keep what we've got to keep this sector employed by any means, but sweeping tax reform is gonna put a couple of million tax accountants and tax lawyers on the unemployment rolls overnight. I don't like them any more than the next guy and I see them as a necessary evil, but the impact on the economy will not be isolated or not felt by all of us who do not make a living off the complicated tax laws under which we currently live.
jcb, I must say though that I like Cain and these are not unsurmountable challenges. I certainly like Cain more than Romney. And I also think Cain would work well with those that win seats in the house from
www.goooh.com.
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