Flat Tax and Angry Voters: Editorial NY Times

http://www.nytimes.com/2011/10/31/opinion/flat-taxes-and-angry-voters.html?_r=1&hp=&adxnnl=1&adxnnlx=1320062591-nF12KikyD4ULY/Zt6EdQkA

Editorial
New York Times
Flat Tax and Angry Voters
October 30, 2011

By wide margins, Americans are now telling pollsters they want a tax system that raises more money and is more fair by asking the rich to pay more. They are connecting the dots between the lavish high-end tax cuts of the past decade and today’s serious problems — including widening inequality and mounting deficits — and demanding change. The Republican presidential candidates aren’t listening.

Take the flat tax plan of Gov. Rick Perry of Texas. For all his talk about how it would make filing easier — that is dubious — what it would really do is give high-income Americans a big tax break, while almost everyone else could expect relatively modest tax savings or none at all.

In his plan, taxpayers could choose to stick with the current system or use the flat tax, under which wages and salary would be taxed at 20 percent, versus a current top rate of 35 percent for the affluent. Investment income and multimillion-dollar estates would be untaxed, versus a current top rate of 15 percent on most investments and 35 percent on estates.