A question was posted about tax reform, and all the responses that got "thumbs up" suggested the flat tax, and all the responses that were rated poorly suggested raising taxes for the super rich. Do people feel this way?
Before you think the flat tax is so wonderful, consider this: if you tax everyone at the same percentage, you are actually taxing their DISPOSABLE INCOME at different percentages.
If the flat tax was 10%, and I made $12,000 a year, I would be taxed $1,200. Doesn't $1,200 seem like a lot of money to someone who is only making $12,000? Every two weeks, fifty dollars is taken out -- money that is badly needed to pay groceries, for gasoline, etc. 100% of my lost tax money would be reducing what I could spend on life expenses, not luxuries.
However, if I made $120,000,000 ($120 million a year), I would lose $12,000,000 in taxes. How much of that twelve million will be going to pay groceries or fill a gas tank? Probably none. It would all be vacation/luxury money.
2007-04-12
13:50:31
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17 answers
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asked by
Anonymous