Why is America afraid of a flat tax?

Answer 1

Because Americans think it's unfair to tax those who earn a living less than those who don't.

Answer 2

the problem with a flat tax is that basic essentials that currently attract no tax will be more expensive for those who can least afford it. if they make some things taxe exempt the whole system becomes overly confusing (see birthday cake interview).

in theory it is simple, everyone is taxed the same amount on everything, instead of 40% on some things and 0% on others. It is meant to even out but make luxury goods cheaper, etc. it also broadens the government's revenue base, and is meant to reduce income tax for everyone.

but the things that get cheaper creep back up again so the retailers pocket the difference anyway.

AND politicians are the sneakiest animals on the planet, and you'll find that they didn't tell you about the "levy" and the "fee" that they've tacked on to everything. they call them anything but tax and they can just tack it on.

this is what happened to us in australia a few years ago and there's no way to turn it back. we voted against it in 3 separate elections and we still got it.

Answer 3

We put in a flat tax back in the 80's, but since then the IRS has added several thousand new tax laws on top of it, so it's basically no better than it was.

The solution is to throw out the whole tax code, abolish the IRS and get on board with the Fair Tax. That's the only way to help the poor, as well as increase revenues by getting money from all the tax evaders. The only ones against it are the lobbyists.

Answer 4

I think Americans were skeptical of the flat tax proposals by Forbes since his scheme would have had businessmen like him paying little or no taxes at all.

There are a lot of people, however, who oppose a flat tax, myself included. When you determine how much money the government needs to operate, that money has to be raised by tax revenues. That's just a fact of life, people will have to pay taxes. The question is how much.
People who have to spend a larger proportion of their incomes on the basic necessities of life deserve to have a larger proportion of their incomes protected from taxation. That's why we have a progressive system. The tax revenue burden is able to fall upon the people who are best able to afford it.
Think of it this way. The basic necessities of life do not scale with your income, they generally top out (though getting more luxurious versions of the basic, no-frill necessities can be obtained, the extra luxury does not constitute necessity) and thus become a substantially smaller proportion of a higher income. So 10% of a $10,000 income is a far greater burden to bear than 10% of a $1,000,000 income even though the absolute dollar amount is smaller.

Answer 5

nothing wrong with a flat tax. Just pick any number between 0 and 10 percent, I'll pay it!

Answer 6

mainly because it would be unfair based on extra income... if you ask me...

if you have a poor person... who is barely covering the bills... then he has little extra money... yet he pays the same rate as someone who inherited millions and has millions left over after he payed the bills...

I happen to think that we live in a system that gives those with ability an advantage that they can make millions... so if the system is in your favor, your way of giving back is to pay a little more in taxes... and most can clearly afford it...

Answer 7

Americans aren't, liberals are. see, liberals study fuzzy math and if you tell them that everyone it going to be taxed 15%, then they think they are paying the same amount as bill gates. they just can't understand how wealthy people and poor people can both pay 15%, but wealthy people still end up paying more. it really is a complicated concept for them and i pity their families.

Answer 8

Americans aren't. Politicians are.

Answer 9

Billionaires and millionaires would have to pay their fair share.