There is endless complaint (and has been for years – from the msm and so on) about some rich people in the United States “only” paying 15% of their income to the Federal government (because they pay capital gains tax), whereas other people can pay as much as 35% (as they pay income tax).
It is much more complicated than the above – because, for example, there are many tax allowances with the various rates of income tax that capital gains tax does not have (so NO Warren Buffet – your secretary does NOT pay a lower rate of tax than you do).
But, O.K. – say the income tax should not be higher than the capital gains tax, say that is “unfair”.
Why does that mean the capital gains tax should be INCREASED – why should the income tax not be CUT?
Sorry Ron Paul but a “zero” rate of Federal income tax for everyone is not possible without a Revolution (and not the peaceful one you have in mind), but a 15% top rate of income tax (with State income taxes on top – no more deducting your State income tax from the income you present to the Federal tax collectors, rich leftists please note – and I do not see why local, State and Federal govenment bonds should be tax free either, why should lending money to the government get special tax treatment?) is perfectly possible.
After all the Federal government would stil have the Social Security tax (sorry “contributions” – although FDRs lawyers said it was a tax when it was challenged before the Supreme Court) and Corporation Tax and …….
So a flat rate 15% income and capital gains tax would be perfectly “fair” and would not require a Revolutionary transformation in the size of the Federal government (just a bit of serious cutting).
“You are only saying the above because it is the centre piece of the Gingrich campaign”.
Not at all – I have supported a “flat” Federal income tax for 30 years.
And the candidate it would most help is MITT ROMNEY – as he would not have to worry about his tax returns anymore. He could just say “yes I pay 15% – SO DO YOU”.