Ohio Roundtable: The Public Square - Flat Tax #1 - Double Taxation
Flat Tax #1 - Double Taxation
How many times should a dollar be taxed, especially if it's a dollar you earned?
"A penny saved is a penny earned," said great American founder Ben Franklin.
But in America today, it doesn't quite work that way.
A penny earned is a penny taxed, and if there's anything left after taxes, and that
money manages to get its way into a savings account, that same penny that is earning
interest gets taxed again when the interest comes out. The process is known as
When we work for a wage, that income is taxed by the federal government. When we save
from those same wages, that interest that was earned is again taxed by the federal
This downward spiral is one of the reasons that Americans and Ohioans are saving less
today than ever before in history and one of the reasons that proponents of a flat tax are
so excited about seeing their ideas become the new law of the land.
In the flat tax system, interest and dividend income would not be taxed, making savings
a whole new area for financial growth. How does that idea sound to you?