What would be the positive/negative effects if the U.S. implemented a 70% flat tax on all income?
2007-09-18 06:42:20 · 9 answers · asked by Hi 3 in Business & Finance ➔ Taxes ➔ United States
I was thinking that prices would have to go down in the U.S because people wouldn't have as much money to spend and it would strengthen the dollar.
2007-09-18 06:54:52 · update #1
And out of that 70%, free healthcare, free (and great) education, free perks, free water, free food and shelter, free vacations, free control of the government to run 70% of our lives. Watch out, health-care reformists, how much of your dollars you want going to them.
2007-09-18 10:13:43 · answer #1 · answered by Anonymous · 0⤊ 1⤋
70%??!! DEPRESSION follows the next day. First you have flight of rich from country to tax-havens amnd then the poor drop dead from keeping only 30 cents of every dollar. Any flat tax hurts after 20% or so. How much money woudl the government realistically need? In a $11 trillion economy, 20% gives Washington more than they could spend (well, maybe not...they do seem to spend every bit they get and then some, don't they?)
70% is outrageous. Even the progressive tax now pulls in on average about 15%-20% of all income. Why on earth would anyone implement a 70% flat tax?
2007-09-18 13:51:59 · answer #2 · answered by Goethe's Ghostwriter 7 · 0⤊ 0⤋
70%? Is that a typo, or are you serious? At that point, pretty much anyone middle class on down would be ahead to quit work and go on welfare - they couldn't afford to live on what was left after taxes. That would pretty much destroy the economy.
A flat tax with a much lower rate would keep the problem of people evading tax on under the table income, but would hit the honest low to middle income person hard while giving a nice tax break to the rich and upper middle class.
Doesn't sound like a good idea to me.
2007-09-18 15:14:19 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
Horrendous. A flat tax of 33-40 % would be revenue nuetral. In other words it would generate the same amount of money that it does now. However a flat tax would never happen. 33-40% of 25 - 30 k would hurt the much more then the same percentage for some one making over 100k.
it will never happen.
70% would cripple the economy. The goverment would become the major employer. redistribution of wealth in that amount would kill small business and hurt large corporations in ways that can be seen with the French economy. Which is in very very bad shape.
2007-09-18 13:53:51 · answer #4 · answered by satrurn1256 2 · 0⤊ 0⤋
Wow 70% Income tax.
I can see this creating a very large and powerful government. Leaving the average working tax payer with very little money to buy goods and services. Imagine the burden of just filling up your car with a tank of gas.
2007-09-18 13:51:02 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Positive: Immigration problems solved, decreased housing prices, no more lines for anything ever (except to get into Mexico and Canada), we could get universal healthcare for about a month
Negative: anyone left in America would probably be commiting tax evasion in order to get by on anything other than government cheese
2007-09-19 02:33:03 · answer #6 · answered by jct_suave 1 · 0⤊ 0⤋
Positive - more income for US govt.
Negative - less for the rest of the US. And if you think that the US Govt will use the extra money wisely......
2007-09-18 13:46:21 · answer #7 · answered by Anonymous · 0⤊ 0⤋
The economy would crash completely and almost immediately. Actual tax revenue would tumble as well as jobs dried up.
2007-09-18 14:18:01 · answer #8 · answered by Bostonian In MO 7 · 0⤊ 0⤋
70% are you serious? That is outragous. There would be nothing positive.
2007-09-18 13:50:28 · answer #9 · answered by justin c 2 · 2⤊ 0⤋