Evangelical college president Greg Thornbury and libertarian biographer Amity Shlaes have written an editorial to explain why a flat tax is better for families than the present regime of child tax credits. (The article said “religious families,” although I don’t see what religion has to do with it other than the fact that my wife and I are married, and our habit of giving 10% of our income to a religious institution.)
A flat tax means everyone’s income is taxed at the same rate, presumably a lower rate than the current average tax rate. The wealthy still end up paying more in taxes as a function of their greater income; the poor pay in proportion to their poverty. It is certainly more fair than a system in which people are taxed both directly and indirectly—a system in which one’s ability to avoid excessive taxes depends on one’s facility with the byzantine complex of exemptions and loopholes built willy-nilly into the tax code.
However, federal income tax is just a fraction of the taxes we all pay. Continue reading Should we get rid of the child tax credit?