Flat tax with NIT

[Captain Awesome]

Hmmmmm, took me a while to figure it out.

So, if I read correctly, the personal income taxes collected go up from 5.80B to 22.50B, right?
And with your plan they'll pay roughly four times more in taxes, am I reading it correctly?

[Punchy MacEconomics]

Hmmmmm, took me a while to figure it out.

So, if I read correctly, the personal income taxes collected go up from 5.80B to 22.50B, right?
And with your plan they'll pay roughly four times more in taxes, am I reading it correctly?

Not quite x4 will be collected, but $22B will be put right back in so in reality PIT will drop by $6B so in reality less income tax is being collected. The reason it is bigger is all income is subject to tax,no deductions. the difference is made up via more revenue from CIT and PST due to increased consumer spending. Plus minor savings in welfare,police and healthcare. Bottom line is almost $1B to the positive.

[Punchy MacEconomics]

I'ld like to add that as the economy grows, even as low as 2%, the amount of revenue increases and allows for the elimination of the PST and MSP. These actions further allow more dollars to be freed into the economy and be spent.

MSP is the worst manner to retrieve this revenue, payroll taxes kill jobs and the is the MSP legacy.

[Rwede]

*off-topic/Jo*

[Punchy MacEconomics]

I find it humorous when right wingers think your a lefty and shoot down any idea you present w/o any research into something that they clearly do not understand.

Here's a little about NIT-----> It was developed by British politician Juliet Rhys-Williams in the 1940s[citation needed] and later United States economist Milton Friedman combined NIT with his flat tax proposals.[1]http://en.wikipedia.org/wiki/Negative_income_tax

Milton Friedman: Friedman was an economic adviser to conservative President Ronald Reagan. His political philosophy extolled the virtues of a free market economic system with minimal intervention. http://en.wikipedia.org/wiki/Milton_Friedman

Juliet Evangeline, Lady Rhys-Williams, DBE, DStJ née Glyn (1898 – 1964), was a British writer, and a Liberal Party politician who later joined the Conservative Party. http://en.wikipedia.org/wiki/Juliet_Rhys-Williams

A couple of socialists, if there every where any. :dyinglaughing:

[Drongoman]

how are you accounting for the savings rate in your model? Your assumption that everyone is going to spend every dollar they get is flawed, there are a few people out there that save a lot of their dough in the bank. What would happen if everyone just banked their $11K instead of spending it?

[Punchy MacEconomics]

how are you accounting for the savings rate in your model? Your assumption that everyone is going to spend every dollar they get is flawed, there are a few people out there that save a lot of their dough in the bank. What would happen if everyone just banked their $11K instead of spending it?

Well the savings rate on average at this point is <5%, which is accounted.

[Veovis]

I don't imagine very many poeple would actually save their money. Many people could save more than they do under the current system.

OF course under either system they will come back and complain once they have again spent more than they had. And you'll be back to "why do we and the rich pay 15% take 80% from the rich and stop punishing the poor."