Henry's advice to labor

[Max Sawicky]

>
> First, I hope someone will correct me if I'm wrong to say that a flat tax
> can easily be less regressive than the current system, because
> just like the
> current system, it can be written to be regressive or progressive as the
> framers wish (exemptions, provisions, loopholes, etc.) (Frankly, for my
> part, I'd gladly pay more just to be able to forget the IRS - so, I'll up
> the ante and declare myself for the VAT. I know I have to pay for
> all those fucking bombs, but do I have to do it with a check from my
> personal account quarterly?)

Depends on what you mean by 'current system' (Fed inc tax, all Fed taxes,
all taxes?) and flat (flat rate w/ or w/o 'flat' base?).  Exemptions,
deductions
really contradict flatness, strictly speaking.  Graduated rates are just
inverted
phased-out deductions.

The Fed income taxes are progressive.  Throw in the payroll tax and the
total is still progressive.  Include all taxes Federal state and local and
the result is said to be more nearly proportional with dips up at the
bottom and top (e.g., higher effective rates).

It would be hard to collect the same revenue and achieve greater
progressivity with a single-rate tax.  You could fantasize about
getting rid of all deductions, but that's all it would be.

No way a VAT can be progressive, if you think it is paid by
consumers.

mbs