Do Americans know that a flat tax would mean taxes would go up for most people?

Question

We have in this country a PROGRESSIVE tax system. That means those who are wealthier (and thus can afford to pay more) pay a higher percentage in taxes. This makes sense. A billionaire could easily afford to pay a certain percentage of taxes (say 20%) then a working class family barely getting by.

However, if we get a flat income tax system or a flat sales tax, that would mean taxes for most people would go up and taxes for the extremely wealthy would go down. It is simple math. Conservatives would like you to believe that everybody tax rate would be lower, but that would be impossible to do and maintain the same amount of revenue.

Then again, conservatives don't seem to care about deficit spending.

Michelle,

First of all, the tax rate would have to be alot higher then 10% for the government to bring in the same amount of tax revenue.

Second of all, by changing to a flat tax system that means the PERCENT in taxes most Americans will pay will go up. The PERCENT in taxes for the ultra wealthy will go down.

With a progressive tax system, the rich pay a higher percent of their income in taxes. If we switch to a flat tax, their taxes would go down. That means taxes for everybody else would have to go up to make up the difference.

Answer 1

I agree with you that a flat income tax would mean that some of the poorest people would still have to pay a disporportionate portion of their already inadequate income. But, I disagree on a couple of points. First of all, the income tax should not exist in the first place. The constitution does not allow for that kind of tax. The constitution only allows for two types of taxation, and taxing a person's wages does not fall into either of those categories. You should watch Aaron Russo's film America from freedom to fascism, as it is an eye opening film, and very informative. There are many people, myself included, who seriously question whether the unconstitutional sixteenth amendment, was properly ratified. It is my personal believe that is was not, but even if it had been, it would be unconstitutional. According to the history that I read, the people who wanted it passed, said it was ratified, when it was not, and everyone just assumed that it was. I think a national sales tax, if it was set up in the right way, would work, and it would also be constitutional. And the rich, who are always buying the most expensive things, would pay the most tax. For it to work, though, certain necessities, like food, would have to be exempt. and nothing could be taxed more than once. That would mean that you would not be taxed on second and third hand things. Do yourself a favor, and watch the movie for free on Google Video, and then, research the full history of the Federal Reserve and the income tax, and the IRS. You may be very glad you did, and then you might just want to join the rest of us, in the fight to change this unconstitutional system! *sm*

Answer 2

I agree with you, people who are advocating a flat tax really need to do their math, you would have to have a higher % for most poor and middle class taxpayers to replace the lost revenue from the rich who are paying large amounts under the current system.

"supreme" for ex doesn't get it, the rich maybe pay 50% or more of their income in taxes under the current system, if you went to let's say a 20% flat tax, you would lose the other 30% that they were currently paying in taxes, that money has to come from somewhere, so what happens is that you have to increase the overall % on everyone to make up for the money that rich would no longer be paying, a non-progressive flat tax shifts tax burden from the wealthy to the poor/middle class

Answer 3

Not all conservatives support the flat tax. A luxury sales tax is a better system. It would be progressive by nature since poor people buy very few and inexpensive luxuries, so they pay little tax, and rich people buy lots of expensive luxuries, so they pay lots of tax. Everyone pays the same rate (10% for example) so it is fair and everyone is treated equally under the law (as the Constitution states).

Answer 4

Funny part is that most conservatives support a national sales tax more. This would teake away the IRS burden on the American public. Pretty sad when 1 of every 3 dollars taken in goes to the IRS

Answer 5

When percentages don't change, NUMBERS increase. 10% of $12000 is far less than 10% of $50 million. How do you figure the poor would be paying more? The beauty of a flat tax is that all of the tax shelters the rich use will go away. THAT's what makes it more fair.

But if you REALLY want 'fair', how about this: Those who don't pay taxes don't get to vote. The ability to vote money into your own pocket is what destroys democracies.

NOW how does a flat tax sound?

Answer 6

A flat tax of 10 or even 12 percent would provide all the money we need if there were no loopholes. And I pay more than that now and im middle class.

you could determine a poverty level baseline and not tax that amount of income. I think right now its something like 9k dollars for a single person or 18k dollars for a family.

So you dont tax anything under that amount and tax the rest at 10%. I think it would work.

Oh and there shouldnt be sales tax on food. Everyone needs to eat.

Answer 7

I'm sure some rich guy just hired an assasin and he's on the way to your house...

they thought had everyone convinced...hahaha

the thing I don't get... conservatives always cry about how bad liberals are with "economics"... yet they push these ideas?

Americans have become very easily duped by the wealthy in almost every aspect of the system... it's probably only a matter of time before this gets passed... guh...

Answer 8

How would a flat sales tax be worse? If you can afford the $1,000,000 house then you should be able to afford the 28% tax. Consumption tax seems to level things out a bit. I am doing more research on it, but in my opinion it looks ok.

Answer 9

Another liberal myth. Go to http://www.fairtax.org/site/PageServer and READ about the proposal. The Fair Tax would end the embedded taxes, the ones we pay for the big corporations through their prices. The Fair Tax would also end the Social Security payroll taxes, as they would be funded from the taxes collected from this tax. Pre-bates are to be issued each month depending upon family size for the basic necessities. The left does not like this plan because it would strip them of the power to tax. Please do some research before posting erroneous DNC talking points.

Answer 10

Simple math: 20% national sales tax
Poor family buys $500 in groceries: $100 in taxes
Rich family buys $10,000,000 home: $2,000,000 in taxes
Yeah, sure went down for the wealthy.

Oh, that $100 in taxes on the food? Well, there are ways around that (prebates and such), but the easier answer is that they are receiving $100 more in their paycheck, b/c no income tax or FICA tax.