flat tax

Flat Tax- A system under which all taxpayers pay taxes at the same percentage rate of their total income.[1]Immoral- Conflicting with generally or traditionally held moral principles .[2]Sound- Free from error, fallacy, or misapprehension.[3] Theft- the act of stealing[4]Steal- to take the property of another[5]Better- more advantageous or effective [6]I negate the flat tax and offer 3 contentions:1. A flat tax is immoral.2. A flat tax is not economically sound.3. A system with no income tax is better than a flat tax system. 1. A Flat Tax is ImmoralWith a flat tax, we must assume that the government owns 100% of our income and allows us to keep a certain percentage of it or it is government theft. Is it not immoral for government to own the property you worked for or if they don't own that property is it not immoral that they can forcibly take the property? Murray N. Rothbard, a scholar, who made major contributions to economics, history, political philosophy, and legal theory[7] said, "the flattaxers seem to make the implicit assumption that the government really owns, or should be owning, all of what everyone makes, at least up to some arbitrary percentage decided by the government. Hence, any failure of government to confiscate everyone’s property up to that amount is somehow a moral blot that needs to be rectified. But to me it is far from self-evident that the government, rather than we ourselves, should have the primary right to our own earnings."[8] 2. A Flat Tax is Not Economically SoundWe are debating the flat tax in general and not a specific flat tax, such as the 9% rate. A tax rate of 90% for everyone is still a flat tax and would effectively eliminate the free market but let’s just assume that the flat tax is 9%. In 2011, 46% of Americans were exempt from paying income tax.[9] With a flat tax of 9%, half of the country would see a tax increase on income. This could have disastrous effects on the economy as those who are already struggling to make ends meet are forced to give up a larger percentage of income.3. A system with No Income Tax is Better Than A Flat Tax SystemA system with no income tax is the only moral system because individuals keep all of their income without threat of government theft. The economy would thrive because every person would keep all of their income enabling them to save more, invest more and buy more goods. Also charitable giving would likely increase as people would have more disposable income. When speaking of assumed tax cuts, Pro states, "Corporations and businesses would have a massive inflow of investment cash, leading to business expansion and new hiring. Since capital gains and dividends are no longer taxed, banks and investors who have kept trillions of dollars on the side would be pouring money into capital investment. Businesses that have been limited in growth due to lack of funds would then be able to start expanding, hiring workers as part of the process. All that new hiring would have a chain reaction, as previously unemployed Americans spend their paychecks, providing a jolt to the demand side of the economy." Wouldn't this be furthered by no income tax?Rebuttal"It would substantially increase the take-home pay for American workers"Not if the tax rate is 90%.All these taxes would be replaced with the 9% individual rate.Not necessarily. Remember, we are debating the flat tax in general and not a specific flat tax. A flat tax could be anywhere from 1% to 100% of income.[1]http://www.investinganswers.com...[2]http://www.merriam-webster.com...[3]http://www.merriam-webster.com...[4]http://www.merriam-webster.com...[5]http://www.merriam-webster.com...[6]http://www.merriam-webster.com...[7]http://mises.org...[8]http://mises.org...[9]http://www.huffingtonpost.com...