Don_Dickle@lemmy.world to Explain Like I'm Five@lemmy.worldEnglish · 2 months agoELI5 What would happen short term if the US got rid of income taxes and went to a flat rate? What would be the long term outcome?message-squaremessage-square11fedilinkarrow-up11arrow-down10
arrow-up11arrow-down1message-squareELI5 What would happen short term if the US got rid of income taxes and went to a flat rate? What would be the long term outcome?Don_Dickle@lemmy.world to Explain Like I'm Five@lemmy.worldEnglish · 2 months agomessage-square11fedilink
minus-squaretoomanypancakes@lemmy.worldlinkfedilinkEnglisharrow-up0·2 months agoFlat taxes impact the poor dramatically more than the rich. I think that’s the last thing we need right now.
minus-square667@lemmy.radiolinkfedilinkEnglisharrow-up0·2 months agoIf one earns $10,000 per year, a $2,000 annual tax is 20% of annualized income. If one earns $100,000 per year, it’s 2%. The less one earns, taxes are a greater proportion of total income. Often, flat tax concepts come (or should come with) tax exemptions for actual low-income folks.
minus-squareguldukat@lemmy.worldlinkfedilinkEnglisharrow-up0·2 months agoA flat tax would be a set percentage of total income. It would cause the rich to pay more since they wouldn’t have their deductions and loopholes, that’s why there’s so much bullshit propaganda against it.
Flat taxes impact the poor dramatically more than the rich. I think that’s the last thing we need right now.
Explain
If one earns $10,000 per year, a $2,000 annual tax is 20% of annualized income.
If one earns $100,000 per year, it’s 2%.
The less one earns, taxes are a greater proportion of total income.
Often, flat tax concepts come (or should come with) tax exemptions for actual low-income folks.
A flat tax would be a set percentage of total income. It would cause the rich to pay more since they wouldn’t have their deductions and loopholes, that’s why there’s so much bullshit propaganda against it.