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Im thinking that the same person that goes through in a BMW making 500 thousand a years to be taxed the same as the person serving them at 5.65 an hour. Am I close?

2007-08-09 16:51:16 · 5 answers · asked by Jennifer P 2 in Business & Finance Taxes United States

5 answers

They'd both pay the same tax RATE. The guy in the BMW would be getting a significant tax break, while the min-wager serving him at the drive-up window would see a MAJOR tax increase. Good deal for Mr BMW. Not so much so for Ms Drive-Up.

2007-08-09 16:58:56 · answer #1 · answered by Bostonian In MO 7 · 1 0

I believe that having a flat tax rather than the present tax system is a great idea. I believe the flat tax is the only way to get us out of the present grotesque, awkward, cumbersome and socialistic tax system we have now. The flat tax is the only way to make sure the extremely wealthy pay something rather than "working" a system where they pay next to nothing. The flat tax is the only way to make sure there is fairness. It is estimated that all taxes (national, state and local) amount to 35% of the net national product. This is the highest ever in the U.S. History! We must do something.
There are those that say the flat tax is unfair. They say the wealthy get a free ride in a flat tax system and that everyone should have to pay their fair share. They really do not mean fair share. They really do not mean equal pain. What they really want to do is punish the upper middle class and wealthy. They want to punish those in the upper ranks and this reeks of socialism. They want there to be pain for not being poor. They believe if someone has succeeded, then they "owe us." I disagree. President Abraham Lincoln said back in 1863 that, "we cannot help the wage earner by punishing the wage payer." Lincoln was right on target.
Some people say that the mortage interest deduction would be incoperated into the flat tax and this would cause the value of all housing to fall. Even though it is the most generous tax preference the middle class gets. On the other hand, the richer you are, the bigger a tax break it is. It does very little to help first-time home-buyers, many of whom take the standard deduction and can't deduct items like mortgage interest or local property taxes

2007-08-11 19:36:20 · answer #2 · answered by mcgheetech79 1 · 0 1

That's about it - they'd all pay the same percentage. Say the rate is set at 15% - and it would probably be higher than that. The person making minimum wage, who now will pay around $300 and get a small EIC to wipe out a little of that, would pay around $1763 instead. That's if they are single. If it's a person with a dependent child, today they'd probably pay nothing and in fact get a couple thousand dollars back due to EIC - under the flat tax they'd get the privilege of paying the $1763. It's a great deal for high income earners, not so good for the poor or middle class.

2007-08-10 00:41:53 · answer #3 · answered by Judy 7 · 0 0

They would be taxed the same percentage. So let's say that percentage is 10%. The guy in the BMW would pay $50,000 a year, and the person making $5.65 an hour (about $11,000 a year) would pay $1,100 a year.

2007-08-09 23:59:18 · answer #4 · answered by Stephanie C 5 · 0 1

Everybody pays the same tax rate for their income taxes, I think it's somewhere around 15%. So somebody who makes $1,000,000 a year pays $150,000 in income taxes, and somebody who makes $20,000 a year pays $3,000 in income taxes.

2007-08-10 00:01:15 · answer #5 · answered by Peter C 2 · 1 0

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