Flat Tax is Good for the Economy

"Under this system that would mean that taxes for EVERYONE would be reduced and hence people would be freer to spend their money on the free market and stimulate the economy that way." Who is everyone since those who do not pay the actual tax rate of 28% would be probably not everyone who saves money? While avoiding a discussion on the income disparity as shown in a previous source the majority of households make beneath the 30% mark for taxation which again was shown in the real 2015 IRS percentage charts in the source by Forbes. Why do I make that point? The notion that everyone wins is completely false. As a matter of fact it's almost the direct opposite; all cash flows are eventually taxed at a flat rate meaning that the concept of everyone winning is at best a falsehood esp. for households that do not earn a lot of money and therefore do not have capital to save for the "saving deduction" in my opponent's source:"Personal saving would be deducted immediately and would remain tax exempt until spent on consumption." This is nothing more than a pseudo Tradiational IRA system [1] and in turn has no real tax benefit as a deduction for low income workers who simply do not have the capacity to save 28% of their tax dollars due to basic cost of living without inclusion for unexpected events or damages.Also, let's redo the math under the 28% tax rule using the real rates of the IRS in 2015 tax season as shown prior for millionaires to accurately gauge the weight. 20,000 * .08 = 1,600, the increase in the liability from current tax rates for lower class working citizens and looking at our millionaire the difference between the actual 39.6% and 28% would be 116,000. So for one millionaire you need 72.5 worker's wages to make up for that tax. There are a real 10.1 millionaires so you need a real 732,500,000 lower class to compensate. Again that's just one tax class figure of only exactly a million and does not incorporate any other group which would get a fundamental tax cut including those who are say high earners 250,000-500,000 which could potentially include bankers, surgeons, lawyers, engineers, accountants and financial workers, etc."To further this, the flat taxation system would end up keeping the Earned Income Tax Credit system, or EITC, which both Liberals and Conservatives support as this reduces poverty rates, especially for single mothers and single parents."There are two problems here:1. The source doesn't explain how it works in the new tax system only what it is. All credits would have to modified since the credits themselves only work within current brackets and are based on income brackets themselves as well as number of dependents, specifically children in most cases, but the earned income credit tables [2] are extremely low. Ironically because the flat tax increases taxation for those who would normally not even pay tax by flattening it across the board the EIC would be probably rendered worthless under it's current model.2. The next problem is a simple math problem. In the first round I purposefully left out credits and deductions so that the reader could easily see the effects on collected taxes, which of course pay for social services, grants, and various other necessities that the government runs including state dispersments and budgeting. All systems suffer because credits and deductions lower taxes and in the case of say, millionaires, putting 28% of your income into savings to avoid paying taxes is really quite easy but on the next front we also have:"The only remaining deductions are for higher education, gifts and charitable contributions, and an optional home mortgage interest deduction."Gifts to charity."More than 80 percent of those worth $25 million or more give at least $10,000 a year to charity, and 21 percent give more than $100,000 a year to charity." From the CNBC source in my first proposal over 21% of millionaires cut their taxes under this model by almost half. Regularly. So now it's just donate and save for the wealthy and never pay taxes again? Well compensating for the difference in one millionaire who does pay tax is one thing but compensating for one that simply uses elegant tax planning strategum and avoids taxation altogether is another. It would take 175 working class to compensate up from 72.5 for just one "smart millionaire" who took the saving's account deduction."The recent studdies have shown that this New Flat Tax system would create economic growth. They've shown that there will be 0.143 percentage points increase to our nations economy." If recent was 2003 and if it was using the same model as the Heritage plan which it isn't, and furthermore if one reads the conclusion's second paragraph, which cannot simply be copied and pasted due to the formatting of the document itself, it clearly states that it is an oversimplified plan that does not account for sudden income changes or contingencies. The source itself is hypothetical in a perfect world not accounting for many real-world issues including a major loss of financing or financial crisis related to certain economic principles that do occur in the real world. It also cites a previous paper from 1995 that had the same issues.Furthermore lowering the GDP is not equivalent to lowering the GPP [3] and my opponent read the source wrong. The value of investments would drop by 16.9% and with fewer taxes being collected the GDP of course drops but does the GPP drop? That's the real question relative to taxation.The graphic itself is just outright wrong. This is based likely on AGI before credits and deductions just like my own simplified model for understanding taxes and tax rate differentials. In 2011 46% didn't pay taxes but under normal circumstances about 40% of the population does not pay FIT [4] and there are a myriad of other factors that are not being taken into consideration; in essence you save nothing under the flat tax because it doesn't actually have a standard deduction anymore. Or would it work like that of Clinton's design eliminaing tax liabiliy for most of the population anyway? [5]3. The reality is that the taxation sysem has been complicated by the changing economic climate in the country adding over 75,000 articles since the major revision in 1987. The idea of a very simple taxation sysem in a governemntal climate based entirely on serving it's populace where a massive chunk of he citizenry do not pay taxes is, at best, whimsical. Tax planning and legal maters involving situations regarding flat tax are still massive even in Russia [6] it's not as simple as flicking a switch and understanding. Furthermore it's 13% flat for residents but a whopping 30% for EXPATs and non-residents [6] which effectively covers the rates of he citizenry and their low GDP is a result but Russia does no have the proposed economic growth promised [7] by flat tax. It is not that simple.It is criical to look at the whole situation of a country before using it as an example as with the Russian Tax Revenue including EXPATS at 30% and the increased accessibility to the country in general in the last few years there is more to this than it would seem.1.http://www.rothira.com...2. http://www.irs.gov...3.https://mises.org...4. http://www.cbpp.org...5. http://www.forbes.com...6.http://www.whitecase.com...6http://russia.angloinfo.com...7.http://www.economist.com...