Could The End Be Nigh For Income Tax?

I was over on Digg and came across this interesting article on the future of the taxation system. The guy who wrote it makes a pretty good argument that income tax is going to have to change.

We see movement in eastern Europe with many of the newly added EU member nations moving to a flat rate tax system. We know that the Conservative Party in the UK are also looking into this fiscal model as a potential successor to the current tax system.

So what do you think? What will happen to national tax systems?

 

I think Russia went to a flat tax and it brings in a ton more revenue, at a lower tax rate for everyone. Not sure how its going now, but I remember reading about it a few years ago.

I'd love to see a flat tax enabled, removal of the IRS, get rid of all the other levels of taxation. I think that a properly implemented flat tax of 3-4% would net the US government about 2.5 trillion each year (I'd have to find that story again, though) - at the expense of accountants and tax lawyers needing jobs.

 

I would be all for changing the tax system.

I think that the best way would be to go with a tariff-based system, supplemented if necessary by a flat rate tax.

 

A quick search on Google revealed This article on Russia's Flat Tax.

I myself am in favor more of a flat tax per person, instead of a flat percent of the income.

 

Tariff's don't work. But something like a GST which stands for Goods & Services Tax (10% here in Australia) is quite effective.

Something definately needs to be done about personal income tax, especially. Big business here are on a flat rate and they are doing great.

 

I favour higher taxes for higher earners, people close to the povety line, have enough trouble getting by, and people like jobs and gates, could pay twice the tax ans still make billions a year, and a nice moderate tax rate for everyone else.
Like everyone else I don't like paying tax, but to think that there are schools with leaky roofs, unsafe streets, bad hospitals, I understand why we need them. I'd happily pay a couple of more percentage points if the money went for kidney machines and not rockets and guns!

 

I have always liked the idea of a VAT (value added tax).
And have the government tax crack, heroin, etc.

Flat rate would have to be high, like 15-20%.

But in any tax system, there are tax cheaters and if ever the US went to flat tax or VAT, books would come out telling people how to cheat.

What I find a bit funny are states, like Iowa, who every year go through a process of trying to raise taxes on tobacco products.
But rarely say anything about alcohol products.

The Iowa Dawg

 

I've got to say the tax system in the US is fun
I started my new job and asked what my tax would be and no one could answer me! This is at University with over 10000 employees!

 

I'm thinking about moving to one of those nice warm tax-avoidance islands.

 

now thats a good idea, give me ten minutes and i'll set a website up so that you can book your flight through me