Are either one of them a feasible alternative to the current, very complicated system?
2007-02-18 15:46:38 · 3 answers · asked by not yet 7 in Business & Finance ➔ Taxes ➔ United States
A flat tax is everyone pays either a certain amount or a certain percentage. Sure 15% of $20,000 is less that 15% of $30,000, but if the area requires $18,000 to live in the area and not be homeless, the person with $20,000 needs to come up with $1,000 just to make ends meet. Sales tax is an example of a flat tax.
A fair tax generally tries to help the lower income bracket by offering more deductables that the higher income brackets. This is done at the expense of more taxes that could have been collected.
2007-02-18 17:44:30 · answer #1 · answered by gregory_dittman 7 · 0⤊ 1⤋
The "fair tax" plan generally contains rebates to cut down some on the negative effect on low-income people. "Flat tax" plans generally don't have this.
2007-02-18 23:51:18 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
The difference is that only one of them is accurately described.
2007-02-19 08:25:40 · answer #3 · answered by skip 6 · 0⤊ 0⤋