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Carson's Tax Plan

http://www.forbes.com/sites/danielmitchell/2016/01/05/with-a-bold-and-pure-flat-tax-ben-carson-sets-the-standard-for-pro-growth-reform/

Highlights:

 1. "Republican presidential candidate Ben Carson on Monday called for imposing a 14.9% flat tax rate on income, ending taxes on capital gains and dividends and abolishing the charitable deduction and all tax credits.

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By the way, the reporter goofed. Carson is proposing to end double taxation of dividends and capital gains, but all income would be taxed. What the reporter should have explained is that capital and business income would be taxed only one time.Carson has basically put forth a pure version of the plan first proposed by economists at Stanford University’s Hoover Institution."

2.  "Mr. Carson’s flat tax would apply only to income above 150% of the poverty level… In some respects, Mr. Carson’s plan is similar to those of the other candidates, all of whom want to lower tax rates… But he goes farther, particularly with his willingness to rip up parts of the tax system that have been in place for a century. …In addition to eliminating the charitable deduction and investment taxation, Mr. Carson would also repeal the estate tax, the mortgage-interest deduction, the state and local tax deduction,  depreciation rules and the alternative minimum tax."

Re: Carson's Tax Plan

  • I don't like the sound of the deductions being removed. Also, a lot of articles I've read say that Carson's plan won't supply enough funds to the federal government to function/get out of debt.

  • I don't like the sound of the deductions being removed. Also, a lot of articles I've read say that Carson's plan won't supply enough funds to the federal government to function/get out of debt.

    The reality is that no tax plan would get us out debt, but I've read that Carson's plan would only add to the debt.  Also, I've heard him change that tax number like 10 times already.  The whole thing sounds like a pipe dream- it would never pass.
  • I don't like the sound of the deductions being removed. Also, a lot of articles I've read say that Carson's plan won't supply enough funds to the federal government to function/get out of debt.

    The reality is that no tax plan would get us out debt, but I've read that Carson's plan would only add to the debt.  Also, I've heard him change that tax number like 10 times already.  The whole thing sounds like a pipe dream- it would never pass.
    Yeah I don't like the sound of those deductions being removed either.  I also believe no tax plan would get us out of debt.  I can't ever imagine us getting out of debt - its like bankruptcy time.  
    Baby Birthday Ticker Ticker
  • vlagrl29 said:

    I don't like the sound of the deductions being removed. Also, a lot of articles I've read say that Carson's plan won't supply enough funds to the federal government to function/get out of debt.

    The reality is that no tax plan would get us out debt, but I've read that Carson's plan would only add to the debt.  Also, I've heard him change that tax number like 10 times already.  The whole thing sounds like a pipe dream- it would never pass.
    Yeah I don't like the sound of those deductions being removed either.  I also believe no tax plan would get us out of debt.  I can't ever imagine us getting out of debt - its like bankruptcy time.  

    Bolded. It will come.

    I don't think any candidates' tax plan will pull us out of debt completely. That's where cuts in spending have to come in concurrently.

  • It's true.  No tax plan eliminates the national debt.  It will take a combination of tax and spending reform to slowly widdle away at the national debt, but it's important not to take on anything else that will add to the debt.  

     At the Christie event I went to last week, someone asked how he was going to handle the debt crisis.  He talked about his entitlement reform and business tax reform plans and then he looked at the guy and said "I will NEVER be able to eliminate 19 trillion dollars and taxes and I am not going to stand here and lie and tell you I can.  I am hoping that all my plans will eliminate about a trillion over the coarse of my term and I promise that I will not continue along the same coarse that has added trillions to the national debt."  At least he was honest.
    MommyLiberty5013vlagrl29
  • I don't like the sound of the deductions being removed. Also, a lot of articles I've read say that Carson's plan won't supply enough funds to the federal government to function/get out of debt.

    But do the articles understand that all Americans would pay the flat tax and there would be no exemptions except extreme poverty? Only about 40% of the American citizenry pays taxes right now. Maybe the article you read is correct, I don't know, but I wonder if the author realizes that there would be millions more people paying that 14.9%.
  • Do you know what he plans to do about tax credits like Earned Income Tax Credit, Child TaxCredit, etc. what about personal exemptions?
  • Question-what sort of tax plan did we have before income tax? If it was a flat tax, why did we switch? I would want to know the answers to these questions before making a decision.

    @MommyLiberty - the articles were mostly opinion articles in various newspapers. I couldn't cite my sources as I've just read them here and there. But I usually don't totally trust opinion articles.

  • I know it is an UO, not only on these boards but for the country at large, but I am really bothered by deductions.  I don't understand why people should be rewarded with tax breaks just for making their own personal decisions...like choosing to have children or buying a house.  I don't blame anyone for taking any tax break they are entitled to...heck, I'm against it, but I still take my mortgage interest tax break.  But that doesn't mean I don't think its strange and largely pointless.

    Admittedly, I don't know the ins and outs of some of these more "out of the box" type tax plans.  But one thing that is ridiculous with our current tax system is it is SO complicated, it actually takes the U.S. government billions of dollars just to manage it every year.  What kind of savings would we see if we were able to cut the IRS by 90% with a vastly simpler tax system.  And why is our system so complicated that many average citizens feel the need to use accountants and/or all these different tax software systems just to do their taxes every year?

    MommyLiberty5013BlueBirdMBals1982
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