Of course, the later scheme takes into consideration allowable deductions, but given the much lower rate of 8 percent as opposed to 32 percent, chances are the taxpayer will end up with a lower tax liability if he/she elects the flat-tax
Deidre O'Neill, 16, said Forbes' flat-tax
plan - which would tax Americans earning $36,000 or more at a 17 percent flat rate - would hurt her parents.
This feature of the flat-tax
reform implies a one-time "lump-sum" tax, or wealth levy, on existing assets.
Only if government's share of the economy were cut to less than 17 percent would Armey's flat-tax
rate be sufficient to balance the federal budget.
Most of the proposals can be categorized as either flat-tax
plans or consumption-based plans, while the "USA" tax proposal sponsored by Senators San Nunn (D-Ga.
Steve Forbes's flat-tax
candidacy vaulted him to the covers of Time and Newsweek--and will almost certainly affect the tenor of the debate between President Clinton and Bob Dole in the fall.
Is there anything at all to like about the flat-tax
All the flat-tax
plans suffer from two general defects.
When millionaire magazine publisher Steve Forbes showed up to promote his flat-tax
schemes, MacKenzie nailed him.
The purest of flat-tax
proposals would clear the tax code of a bewildering array of deductions, preferences and exemptions.
For example, the Armey flat-tax
proposal would completely eliminate all itemized deductions, e.
proposals do not tax income from saving; they are therefore a form of consumption tax.