The issue with a flat tax system, though, is that the value behind each dollar is different for different classes of people.
$20 is chump change for a billionaire. $20 for a middle class person might be some nice takeout for an evening. $20 could mean whether or not a working poor person can eat that day, or if they have to save what money they have for rent or electricity.
A flat tax system isn’t actually “flat”, not in practice. It’d be more accurate to describe it as “regressive”.
No, because you’re charging people the same effective rate regardless of their ability to pay.
Someone in the 0.1% of the 0.1% can afford to give a lot more of their income than someone in the bottom 25%. As such, a flat tax rate would negatively impact lower income taxpayers compared to high-earners.
Hence why I described it as “regressive” in my earlier comment.
A flat tax system would resolve a lot of this.
The issue with a flat tax system, though, is that the value behind each dollar is different for different classes of people.
$20 is chump change for a billionaire. $20 for a middle class person might be some nice takeout for an evening. $20 could mean whether or not a working poor person can eat that day, or if they have to save what money they have for rent or electricity.
A flat tax system isn’t actually “flat”, not in practice. It’d be more accurate to describe it as “regressive”.
I agree with you, but wouldn’t a flat percentage fix this? Something like everyone pays 20% tax on all earned and unearned income, no exceptions.
No, because you’re charging people the same effective rate regardless of their ability to pay.
Someone in the 0.1% of the 0.1% can afford to give a lot more of their income than someone in the bottom 25%. As such, a flat tax rate would negatively impact lower income taxpayers compared to high-earners.
Hence why I described it as “regressive” in my earlier comment.