Why can't America have a flat tax so that rich and poor people are paying the same percentage?

Question

moonbeam proposed 15 I think thats too low, I think 20% is enough

Answer 1

Actually, with the proposed Flat Tax, the poor (those at poverty level or below), won't be paying any taxes. Instead, they'll receive credit to make up for any taxes that they might have to pay. :)

Answer 2

Please read this ENTIRE answer before rating:

Some people say that a flat tax is unfair because it hurts the poor. It is true that a flat tax would hurt the poor more than the progressive tax system that is in place.

Progressive tax systems are unfair because it takes hard earned money from the rich and the middle classes, and gives the poor a free pass. It means that the rich are required to pick up the slack for the poor. Many people say the poor should be less accountable because they don't have money to spare, and that is why they argue in their favor. This led to the progressive tax system.

People also have a certain feeling of charity and/or guilt that makes giving the needy an easier ride seem like the right thing to do. I understand this. Sometimes people need help. Some people think that the poor should not be blamed for being poor. In many cases, unlucky events lead to poverty, and not an unwillingness to work.

But here's where I disagree. I don't see how that can fairly be turned into requiring the wealthy to pay more because the poor can't afford it. It certainly is not the a rich man's fault that a poor man is poor is poor, yet he is the one affected.

Others would say that everyone should pay a specified percentage of their income, a flat tax. The rich would still pay much higher monetary amounts than the poor, because their income is higher. The rich would still pay an overwhelming majority of the taxes. This seems the most fair to me. At least nobody is negatively affected because of someone esle's shortcomings.

A few years ago, Steve Forbes ran for president under the platform of a 17% flat tax.

The 16th amendment, which gives the federal government the right to collect income tax, says that the taxes must be "apportioned equally".
Look it up. I am not joking.

The whole progressive income tax system is unconstitutional. I still don't understand why people have not taken this issue to court and had the progressive tax system overturned.

A flat tax is the only truly fair way to do it. Taxes hurt everyone, not just the poor, and not just the rich. The fact that the poor get unfairly hurt by a flat tax should have no more bearing on the equation than the fact that the rich get hurt unfairly by a progressive tax.

The only issue is that people sypathize for the poor, and the rich are, unfortunately, dispised. Everyone, except the rich, think that money is the panacea for all of their problems. The truth couldn't be farther from this.

People who are successful should be respected and not envied.

Answer 3

A flat tax that is revenue neutral would, by necessity, be a major tax-increase on the middle class and major tax reduction on the rich.

There is no way it can be otherwise without dramatically reducing the total amount of taxes collected.


Such a tax was proposed in Ohio, and even though it would have actually brought in less money, it would have resulted in a major tax-increase on the middle class.

Answer 4

Actually, with the proposed Flat Tax, the poor (those at poverty level or below), won't be paying any taxes. Instead, they'll receive credit to make up for any taxes that they might have to pay. :)

That doesn't sound fair to the middle class.

Answer 5

With a "flat" tax I'm assuming there would be no deductions, so 10% would be about right and would generate around the same revenue. While not crippling the poor.

Answer 6

Sounds like a good idea, as long as it is on luxury items only. Food, shelter, etc would have to be exempt so it isn't a regressive tax. To maintain existing funding levels, it would have to be high (20%-23%), but if we cut spending it could be as low as 5% - 10%.

Answer 7

The answer to the question is in the number of responses to it. People in this country are divided on what is fair and what is not. Those who support the flat tax understand the idea of competitive capitalism. Those who are against it...just don't get it. To them, anything not resembling socialism is "unfair" and they will continue to vote in that manner. That's why the US will never have a flat tax.

Answer 8

Only if the flat tax includes a tax on housing allowances and abolishing escrow accounts for CEOs setup by companies to pay their taxes for them.

Answer 9

Poor people don't pay taxes and the rich pay a lot more then you realize. I'd almost bet that you didn't know that for every tax your employer takes out of your check, they have to match that amount and then they have to pay even more for the business that you never have to worry about. I own a business and I know.

Answer 10

25% tax on all families,
Companies that go out of country for labor add another 25% tax on them. force the big companies to start keeping jobs here. If they want to shut down then let them there is always someone to pick up the slack. Take away the special tax breaks for big business.