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Why would anyone earning less than $100,000 per year support a flat tax candidate?
Flat taxes are nice to hear, but are a joke in real life. People say that they are fair taxes. They are only fair to the wealthy.
We have a tiered tax now and the highest earners pay the majority of the tax burden.
It would be nice to have a flat tax and not penalize people for being successful, but the math does not work.
The tax burden for the lower and middle class would have to rise to such levels as to increase poverty in order to make up for the losses incurred by cutting the tax burden from the over-privileged.
A person earning $12,000 per year can not afford $1,200 in flat/fair taxes. A faimily of 4 earning $25,000 per year can not afford $2,500 in flat/fair taxes. But, a person earning $250,000 per year can afford $25,000in flat/fair taxes. They currently pay $100,000 per year in tiered taxes.
Do you want the $12,000 per year single moms to make up the difference?
A National sales tax, instead of income tax, might work. It works in several states.
7 Answers
- 1 decade agoFavorite Answer
Texas does everything on a sales tax basis. The people who spend more, pay more. There is no sales tax on food, and once a year they have a tax free weekend before school starts so that school supplies and clothes aren't taxed.
They also tier the sales tax. Things that are luxuries cost more than necessities. For example, Holiday Inn is taxed at a lower percentage than the Hilton. Hummers are taxed at a higher percentage than Focus. You pay sales tax at a restaurant but not the grocery store. Vices like tobacco and alcohol are taxed out the @$$.
I like this system. It doesn't penalize you for being rich or poor, It only taxes you on spending. A national sales tax would be much simpler than a national income tax, and it doesn't hurt anyone's pocketbook. People don't buy what they can't afford.
- DARLv 71 decade ago
It depends on how they are structured. There is a credit involved to offset tax on [a set amount reflecting a certain income]. The bells and whistles matter.
Personally, I think we need to cut spending. Without income tax our government would have the same revenues it had in the early 2000's. So cut spending, already. Spending by government has gone up 40% since 1997. That is what happens when you are spending someone else's money and accrue power thereby.
So why do we let them get away with it?
(I agree that a national sales tax, w/ a credit, would be better, but we STILL have to reduce spending.)
Have you seen this?
- goo_head_83Lv 71 decade ago
People think it is a good idea cause they hear the word "flat" and think it sounds good. They are not well versed enough in economics to understand its negative impacts on the lower incomes.
- Anonymous1 decade ago
The best way to do this, is for the goverment to get out of the 'giving' business and go back to the work the constitiuion set forth and stay out of everything else.
DOn't spend more than you take in.
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- 1 decade ago
Dear, I'd love a flat tax. The bottom line is, if it has to be tiered somewhere, it has to be tiered everywhere. It'll be unfair to someone, and it won't get through otherwise.
- darowdomoLv 61 decade ago
You are absolutely right. The wealthy would love this but the poor wouldn't be able to pay it.
