Flat Tax Debate and Poll
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In the Dick Armey flat tax proposal each individual pays 17 percent of total wages, salaries, and pensions. This is applied after subtracting the appropriate deductions. The deductions are $11,350 for a single person and $22,700 for a married couple filing jointly with an additional deduction of $5,300 for each dependent. A family of four making $36,000 would not pay federal income tax.
In the Dick Armey flat tax proposal mortgage interest payments would no longer be deductible.
In the Dick Armey proposal the flat-tax system eliminates the estate tax, the capital gains tax, and the tax on interest and dividends.
Many of the rich don't have 9 to 5 jobs. Their income is make up of capital gains, interest or dividends. They would pay no tax on this kind of income..
In the Dick Armey flat tax proposal the flat tax would not tax social security benefits and would have no effect on current Medicare payroll taxes.
In the Dick Armey flat tax proposal businesses pay a 17 percent tax on the difference between revenues and expenses. businesses can immediately deduct all expenses-including structural expenditures and equipment. One study suggest that business will have more money for investment and labor.
In the Dick Armey flat tax proposal businesses would not be allowed to deduct fringe benefits, interest, or payments to owners.
Businesses might not be as likely to give its employees health care or other benefits since they would not be deductible.
Employers would give the money normally spent on benefits to employees in the form of additional wages, because employers would still be allowed to deduct wages. Employees could buy whatever insurance they need.