Today in the economy

[VictorCharlie]

On a different topic...Whats your opinion on a flat tax? Also use of income verus usage taxes (sales tax etc)?

[Kirkland Laing]

On a different topic...Whats your opinion on a flat tax? Also use of income verus usage taxes (sales tax etc)?

I'd be delighted to see everybody pay the same level of tax. I'd prefer a slightly progressive tax where high earners pay a little more but a flat rate would be an outstanding improvement on the current situation and I'd settle for that. I''d like to see, say, hedge fund manager John Paulson pay the same rate of tax as, say, the median US household*.

The median US household (Joe 150 million out of 300 million in earnings) made about $50 000 last year, and what with social security, medicare, income tax, State taxes, sales taxes and all the other taxes pays almost 50% of his fifty thousand in tax.

Paulson made $3.7 billion in 2007 and will end up paying about 5% of it in taxes. He'll also be able to defer payment for up to 30 years so that 5% will earn enough in interest to pay for itself. If Paulson's rate was the same as the average American there'd be a significant increase in tax revenue and he'd still make enough money to get his groceries in.

I'm not really bothered how taxes are raised but i'd like to see everybody pay at least a roughly similar rate.