less taxes for Romney - we pay more under Ryan Plan

[David Hilbert]

Actually a flat tax is on income. But yes, the poor do spend all their money to live on, but food and shelter aren't taxed. ( don't tell the democrats that, because they will want to tax that too). Most are already paying sales and excise taxes on everything else.

You don't understand what investment income is. Money invested has already been taxed and is now at risk of being lost. It's sort of like taking your paycheck to Las Vegas and gambling with it. We also have another thing called the "Alternative Minimum Tax", http://en.wikipedia.org/wiki/Alternative_minimum_tax that taxes certain types of income at a higher rate.

Since your employer pays taxes, why do you not consider your income tax double taxation too?

 

[Cruella]

Since your employer pays taxes, why do you not consider your income tax double taxation too?

Just because your employer has to pay payroll taxes, it has no bearing on your tax liability.
The payroll taxes he is responsible for (matching your social security and medicare) he deducts them as an expense from the companies income. He also gets to deduct any unemployment and SDI taxes he pays on your behalf.

 

[dogtowner]

Rent and food are taxed?

Property taxes on rental property are paid through rent, so yes, housing is taxed. Some foods are taxed as well, like soda and other sugary drinks.

As for the topic, the Ryan plan does eliminate many deductions but it also makes significant changes to the tax rates in the code. The six levels of progressive taxation are replaced by two levels, 10% for the bottom and middle income earners and a 25% rate for the highest earners. Even with the loss of popular deductions, a new 10% tax rate for middle income earners would represent a significant tax cut for the middle class.

as noted rent is taxed and so is food in the myriad invisible taxes you never see. this is an excellent example of why the Fair Tax can be set t 23% while simultaneously all other taxes are eliminated. that is the buried tax burden people do not see. drop all current taxes add in the 23% and the price does not (on average across all salable things) change.