How a Flat Tax Would (Ahem) Kill Jobs.

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This is the dumbest article I have ever read. We need to keep the tax system complicated to retain jobs? I'm sure there are other industries we can over complicate to lower unemployement as well.

Josh H of AL 2:32PM October 24, 2012

This is ridiculous. Sure 800,000 jobs would go out the door at first, but so much benefit would come from this system in the long run. And there are several other accounting jobs besides those involving tax-filing. That's the problem with today's society. No one is willing to burn bridges and make the tough decisions. Politicians are way too concerned with their image. A whole lot of cowards they are.

Cameron of MT 12:51AM July 03, 2012

This is the dumbest article I've ever read. This basically argues that complexity creates jobs and simplicity destroys jobs. If that is your argument, then why not completely over complicated all walks of life and we'd have 0% unemployment.

DaleM of CO 3:58PM December 07, 2011

i don't think a flat income tax is the way to go. i think there should be a flat SALES tax.
people are complaining about the ultra rich not paying there fair share, but lets see how much GE paid in taxes in 2011..... $0.00 after making over 10 BILLION in pretax income.

nate of WY 3:06PM December 07, 2011

WILLIAM said pretty much what was on my mind. You'd justify retaining the massive inefficiency a complexity of the current tax code by the fact that we'd put tax preparers out of jobs?!?
BTW - I disagree that spending on infrastructure is a similar issue. It's different in one very important way: if we spend on infrastructure (even inefficiently) we at least have something tangible at the end of the day, something which may even help grow the economy. Retaining an inefficient tax code means we just have lots of paper.

Mike F of CA 11:40AM December 07, 2011

If Rick Newman just had the same empathy for Blacksmiths--no telling how far our economy could soar

Dick Crump of KS 8:21AM December 07, 2011

Accountants and lawyers don't really add add value. They produce nothing of real-life use to anyone. If that brainpower was freed from thinking about tax efficiency, it could think about real efficiency and and real advances that would add something useful in life, rather than just just siphon off some money to hopefully reduce the amount going to taxes.

Larry M of MN 11:03PM December 06, 2011

Is that really your argument, that tax preparers would have to find a new job, really?
Honestly?
Come one, you can do better than that.

William Frederickshaschen of GA 10:44AM November 02, 2011

but they never mention how many people this administratrion has put out of work. Especially in the energy industry

mike of FL 6:58AM November 02, 2011

It's not just the tax preparers, lawyers and accountants who would lose jobs under (lowered) flat taxes. You could expect a new fraction of all employees everywhere to get the axe. Why? Because you would be introducing a new incentive to owners, managements and boards to "downsize for efficiency".
Really? Of course, dear readers.
If XYZ Corporation now hires Joe at a total cost of say $50,000 (benefits and all), it DEDUCTS his compensation from taxable income before paying any income tax. Assuming the company is making a profit (and most of them are), the net after-tax cost of having Joe on the payroll in the 35%-corporate-tax-rate environment is only $32,500. (XYZ Corp would have had to pay $17,500 more in income taxes if it found a way to do without Joe and his $50,000 cost.
When you reduce the tax rate to 20%, the net after-tax (and VERY visible) cost of Joe is suddenly $40,000. At Herman Cain's proposed 9% rate, Joe is now seen as a $45,500 "burden" on the company's bottom line. Can we understand why Joe would become a new target for the layoff list? The lower the taxes on owners' net income, the worse this gets. Yet, too many people still believe that XYZ Corp would surely hire more workers if only it had lower taxes on its income. That's the Republican lie, and the precise opposite is the truth. I sure hope the Dems learn how to explain this with clarity.

Muser of NM 9:19PM October 31, 2011