Flat Tax vs Progressive Tax: Which System Benefits the Middle Class?

Neither...

 

Both of these ideas are based on Income Tax, the BOX, the PRISON.

The Income Tax is the system that took our freedom via the 16th Amendment over 100 years ago.

Americans will achieve phenomenal wealth, health, happiness and freedom when we escape from the Income Tax system.

The solution outside the BOX is the National Freedom Tax, described by the new book with that name.

The National Freedom Tax

The National Freedom Tax is based on taxing consumption, a sales tax on all goods and services consumed by individuals. 

The States collect the tax at the Point of Sale so there is no need for the IRS.

Flat Tax

The Flat Tax is a single rate on everyone’s Income. Rich people pay too little and poor people pay too much.

 

What is income? 

Wages, Business Net Income, Capital gains on the sale of property, and so forth. 

It’s unfair to most and it’s too complicated.

 

It’s also too expensive, i.e. about 21% of the tax collected is wasted by the IRS and the Tax Avoidance Industry. 

References in the National Freedom Tax book reveal that a Flat Tax in the present Income Tax based system would have to be very large like 25% to 50% to raise enough money to fund the government at the present level, about $4 Trillion.

Progressive Tax

The Progressive Tax is what we have now. The more you make, the higher the tax rate.

Business creates wealth for its owners and workers. 

References show 80% of all businesses are small businesses owned by individuals. The Income Tax penalizes most people trying to create wealth for families.

Advantages of the National Freedom Tax

The National Freedom Tax, outside the box solution, taxes consumption not Income.

The advantages for the middle class are:

1. No IRS, No Income Tax
2. No tax return to file.
3. Large increase in take-home pay for those that work for wages, tax free.
4. Business are no longer the Government’s unpaid tax collectors
5. Business Net Income is not taxed, leaving it for the business owner to make choices like paying more to his employees, investing part of it to grow the business, or just keeping it.
6. The consumption tax rate is low (15% or less) because the tax base is much larger than the Income Tax.
7. Government bureaucrats can no longer pick winners and losers.

All of these benefits are explained in the National Freedom Tax book, published and available on Amazon and Barnes and Noble.