2007-06-25 04:49:42 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
It's not good. If you do Piecewise Linear Functions based on proposed flat taxes, you will find that the poor are taxed less under the current system.
2007-06-25 04:55:18 · answer #1 · answered by JimmyTheGrunt 3 · 0⤊ 0⤋
Pro: Nice fat tax cut for the wealthy. Why? The max tax rate for the wealthiest taxpayers is 35%. Any flat tax rate lower than about 33% guarantees the wealthy of a tax cut. Since the rate would have to be around 25% to 27% to equal current revenues, that's a nice FAT tax cut for the wealthy.
Con: Nice fat tax cut for the wealthy. Why is this a con?? Well, if you shift the burden from one group, you must transfer it to another group to keep revenues level. If the wealthy don't pay it, the poor and midddle class will. Most working poor would be devastated by a 25% flat tax as they pay no tax right now. The middle class would shoulder the majority of the burden and many would be bankrupted by it.
2007-06-25 07:26:57 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Pro - taxes the underground economy.
Con - hits the poor hardest, middle class hard, gives a nice break to the rich.
2007-06-25 06:13:17 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
A flat tax would charge everyone the same percentage. It would keep people from using loopholes to keep from paying taxes. Right now, the middle class carries the heaviest tax burden. If there was a flat tax, that should shift to the rich.
2007-06-25 06:09:27 · answer #4 · answered by angela 6 · 0⤊ 2⤋