Why do people have such a huge problem with a flat tax rate?

Question

Isn't that only fair? That an equal percentage of EVERYONE'S money is paid in taxes no matter what their income is? Instead you have all of the left-wingers screaming about how we should make the rich pay more...(which the rich already do, they make more money, so the money taken from that percentage is higher than a lower class person) Of course, when it involves any of them, then they want nothing to do with it. I'd be willing to bet if I threw a few million dollars a lib's way, that then he'd be against a graduated tax rate.
We need to stop punishing the rich people for being successful, because it sure as heck isn't the capitalistic way.
It's communist is what it is.
Anyone with me on this?

Answer 1

I am all for a flat tax rate - check it out if it were 10%

if you make 10K a year - then you pay $1,000.

if you make 100K a year - then you pay $10,000

the rich would pay more. and the poor would pay less. its the only real fair way to do it.

Everyone needs to contribute, the rich should NOT be forced to support thos who have not done as well.

Answer 2

I don't see a problem with the flat tax rate. The only thing that I worry about is people that inherit everything. Then they aren't being successful and hard-working, just lucky.

I am more of a fan of a huge sales tax. That way if you buy a hummer rather than a Taurus, you pay for it because you obviously have the money for a hummer, you have money for uncle sam as well. That way we also cut back on waste and overconsumption. Also, that way if you work hard and save your money, you don't get it stolen before you ever get a shot at saving it (via income tax). That way if you work hard and live within your means, you will pay less tax than those that blow all of their money on plasma tvs they can't afford. That would cut down on bankruptcies and consumer debt load and we all know that less debt is good. Also, that way Washington is reminded that they have to live within their means because they don't get an April 15th, they get a certain percentage of the national GDP. If the economy does well, Washington does well, if the economy slumps, so does Washington.

Of course basic food (sorry, Oreos get taxed) and water(from municipal sources) wouldn't be taxed because that's cruel. Also, there are no property taxes because people gotta live somewhere.

That just makes sense to me.

Answer 3

The idea of a flat tax seems nice on the outside, but when you actually start looking at the effects it has, you can realize that it really hurts our economy as a whole. The current tax system has us paying based on our income. The diagram comes out looking like a diagonal line going up and to the right. WIth the X axis representing income with less income to the left. The Y axis represents amount paid with more paid going up and less going down. The way this graph comes out, we see that the precentage paid based on income is relativaley the same throughout. When we institute a flat tax, that diagonal line becomes flat and we have people paying more than they can afford, also, we have people paying less than what helps. Not only does the flat tax hurt people, but it doesnt represent everyone equally. And we all know that this is what America is all about, equal representation (especially with taxes). While it seems communist to have our current tax system, the flat tax that you are thinking of would have to have that horizontal line be raised up way to high for it to be effective whatsoever, which virtually cripples the poor community even more.

Answer 4

Do the math:
Constant= 10% tax accross the board for everyone.

John makes 1,000,000.00 a year
10% tax would be 100,000

Mary makes 30, 000 a year
10% tax would be 3,000

John has no trouble living on 900,000 a year and with investments probably exceeds his previous total. He still dines in fine restaurants and flies in private jets.

Mary has trouble living on 27,000 she can barely pay rent on a run down apartment and her kids have to eat mac and cheese 3 nights a week because that is all she can afford.

Who benefits the most from a flat tax? Each is paying the same percentage of their income in taxes.

Does a flat tax matter? John still would have it better than Mary with or without a flat tax.

I am not familiar with how things are done tax wise in a Communist country but since everyone is "equal" in a Communist country they probably would have something like a flat tax. John being equal (just a little more equal is all) with Mary he would pay more actual money but the percentage would be the same. See, equality is a good thing (yeah right)

Answer 5

It has to do with the left wing / liberal / socialist school of thought, where the richer and more successful one is, the higher the penalty (i.e. progressive income tax). This same group of people will constantly whine about equality, not understanding the fact that a flat tax is equality in it's purest form, where everyone pays the same. If one person makes 10 or 100 times more money than the other, then that person pays 10 or 100 times more tax. It's that simple.

Answer 6

10% of ten dollars is a dollar. To someone who only had $10 that could be the difference between life and death.

10% of 10 thousand dollars is $1000, if you have $9000 to spare you still have an awful lot of money compared to that man with only $9.

The rich can afford to both pay more, AND to pay a higher percentage.

Punishing the rich certainly is communist - that is what communism is pretty much founded upon. However, that is certainly not the ideal of socialism, which is founded upon social justice, NOT taking everything from the rich and giving nothing to anyone (which is what communism was in reality). Every country in Europe has a (sometimes vastly so) higher degree of socialism than in the US. Sweden has just under a THIRD of all tax on gross income from employers alone, ten times more than the US - and then a further 30% on personal income tax. By your accounts Sweden should be a floundering, backward country with an economy bereft of growth and supporting sponges. Yet it is among the largest economies of Europe, with a growth rate of 3%. They have one of the highest standards of living in the world (6th in Europe, 10 places ahead of the UK), yet the flattest difference in incomes. The 4th richest person in the world, Ingvar Kamprad, is a Swedish entrepreneur, so high tax is no stunt to success.

How is all that possible if gradiated tax rates and other socialist ideals are so bad?

Answer 7

well the graduated tax plan gives the lower incomes a break in all actuality. the top 1% pays 95% of the tax. so this might actually increase the tax on the lower incomes if it isnt done right. and considering the mess that the government is i dont necessarily trust them to figure it out.

Answer 8

I have no problem with a flat tax concept. Pick the percentage and then everyone pays it. But WHAT are you taxing? Because if it's only earned income, that might not be fair because the "rich" hide their income in tax shelters.

Answer 9

Yes all the way, but unfortunately we're dealing with many people that have either been brainwashed by communist / ignorant teachers / parents / relatives / friends, and or simply lack the understanding regarding the benefits of the flat tax system, and of course much more can be logically argued regarding this topic...

Answer 10

Lazy people are HAPPY that I pay 35% (or whatever the top bracket is - I don't do our taxes) of my income in taxes and get hit with an additonal $6,000 because of the Alternative Min. tax.
We are being punished because we make a decent living and are successful.
If we paid our fair share at 15% - like everyone else - our 15% would still be greater than the unmotivated person who sweeps floors for a living.