being economically challenged,i don't get why a flat tax rate for everyone isn't fair......the more ya make,the more ya pay......
Because the proportion of income of what people need to live on changes radically. If you make $20,000 a year, you need all of it to survive. If you make $2,000,000 a year, you need very little of it to survive. So where do you put the flat tax? 10% both overburdens the first person and doesn't take enough from the second person to keep government operating adequately. Past a certain point, people can afford to educate their kids anywhere, using an example of an important common expense. And so we put a greater burden on people who can carry it for basically the same reason (using a metaphor Imused in a post once) that we put our biggest football players on the line instead of in the backfield - that's where the heavy lifting is.
ok...but....if you and me wanted to join a club,and the fee for you was 10x the fee for me cause you make 10x what i do......would you join? kinda simplistic,i know,but i'm a simple dude.......i think i'm tryin to say that everyone pull their fair,but equal,share....
I was raised to believe that the more you have, the more you should give. And that seems to be the opposite of what is America now.
I'd say in the case of taxation it would be closer to fair to use an equal portion of disposable income. We can't measure that exactly but the proportion of income that is disposable tends to rise with income. And this question doesn't take my first answer to you into account in the respect that a number like 10% doesn't work for the country at either end of the income spectrum, so a flat tax can't work effectively.
So, how do you handle it? Say that if you make $19,000 a year you don't pay taxes but at $20,000 the flat tax kicks in? The problem with that is people now earning $19,999.99 because the next penny of income costs them $2,000 at a 10% rate. That's a damned expensive penny.
You could say that the first $20,000 isn't taxed but everything past that is taxed at, I don't know, 20%. Then, that penny doesn't cost you a fortune - if you make $20,010, your tax is $2. However, you've just effectively gotten rid of a flat tax and introduced a graduated tax. If everything over $20,000 is flat taxed at 20% and you make $40,000, your effective tax rate is 10% (0 on the first 20k and 20% on the next 20k equals $4k, or 10% of income). If you make $100,000, your effective rate is 16% (20% of $80k).
i'm sayin ALL earned income.....ya earn a buck,ya pay a dime....
lemme try a maybe better simple man view...
all annual earned income in the US is XXXXXXXXXX...
annual budget for the govt is X....
so if ALL earned income is taxed at 10%,budget is met....
It misses the problem of those at the bottom. If you make poverty level wages, earning $12,000 a year doesn't mean you can afford $1,200.
AMEN!
Terry,
Which is a microcosm of my issue with income/wealth polarization in general.
Maybe all tax is a figment of our imagination. Some of my best friend's are CPAs!
A thick book oughtahbee written about the Clinton Surplus, the perpetual (automatic generational WEDGE) Congressional 'borrowing' from the Social Security fund. The predictable 'lack of logistical expertise' whenever mind numbing loss of life and wicked 'acts of nature' explode our sanctuaries and sustenance. Eg: why don't we plumb valved geysers as 'preemptive fire lines'. Why don't we osmosis and chill-down the Verdev Straits hot spots, Years off, I wrote of Teflon umbrellas (post Reagan shooting, pre-Brady bill). Government accounting is a grey hole.
The a priori 'adventure' is keeping the fine' nuclear genie in the bottle. The CIC of North Korea is not the sharpest blade on the Swiss Army knife. And from the 'I can't believe it's not protein file' I clearly remember a Craig's List advertisement/solicitation for AmeriCorps with the high-lighted wage of $.63 per hour. Sure the corp offers three hots and a cot (maybe a futon???) but the what you can do for your country aspect of the opportunity is certainly worth more than 12 per cent of the Federal minimal wage. One of my smartest mentors was fond of having 'staff' fax his 1040's as though we needed to know he grossed $249,999. Dude was markedly OK; company fudgsicles every 15 APRIL, No Name Steaks for Memorial Day etc. generous T & E spence counts, pro-sports box tickets but yet a frugal eye on the high-noon of the bottom line
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