Lv 6
? asked in Politics & GovernmentPolitics · 8 years ago

How is the Flat Tax Regressive everybody pays the same tax rate it is equal ? It is called FAIRNESS?

How is the Flat Tax Regressive everybody pays the same tax rate it is equal ? Can any Democrat Liberal or Progressive explain ? Is the Flat Tax unfair because a Rich/Wealthy Person will have have more money left after he pays the Flat Tax Rate of 18% while a Middle Class Person will have less money left after he pays the Flat Tax Rate of 18% ?

16 Answers

  • Anonymous
    8 years ago
    Best Answer

    What makes it unfair is the lowest bracket uses 90% of their income to survive. It furthers the divide between poor and rich, and in many cases will increase the need for reliance on public services.

  • 8 years ago

    A progressive flat tax based on income is what's fair? Why? Because the more money you make the more you use in the way of government services and benefits. Ahhhhh (chuckle)....I hear conservative heads exploding already. No, but really, it's true. I have many examples, but 'll give you just a few big ones for now:

    Defense - Which is 20% of the national budget BTW. Who benefits more from national defense? The rich. Why? Because they have more to lose should the country fall to invaders. The rich own far more in the way of real estate, private business, securities, etc, than the middle class and poor. Why shouldn't they invest more to protect what they own. It's like the guy who owns a big house, he needs a big insurance policy to protect it, right? Then he needs to pay!

    Public Education - Here again the rich benefit more because without the talent pool provided by the public education system, they would not be able to build businesses as prosperous. Yes, the rich leverage everyone elses talent to build their empires. The rich also have a higher percentage of their children in public universities.

    Massive Bailouts - Did the middle class get a government bail out in 2008? No, but the rich did.

    Corporate Welfare. Counting tax breaks and expenditures, corporations and the rich hog over $400 billion a year, compare that to the $116 billion spent on programs for the poor.

    The rich need to pay up! Go 99%!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  • Anonymous
    8 years ago

    The problem with an 18% Flat tax is that 18% is 3 more than 15%......and 15% is the typical Gross profit margin of most mature corporations....so in the absence of deductions (which all go away under the Flat tax proposal), the eight out of every ten US companies that currently pay ZERO Income taxes will get hit with an 18% increase in the cost of doing business...

    What do you imagine THAT will do to our economy?

  • Anonymous
    8 years ago

    A flat tax with no deductions is regressive because it puts a greater burden the working poor. An 18% income tax with no deduction or personal exemption would quadruple the amount I pay in income tax. That would likely make me need some sort of governmental aid to survive.

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  • John E
    Lv 7
    8 years ago

    "this reflects the use of capital" = garbage. BTW.

    My answer :

    It is fair as fair gets. The liberals don't want a change because those that have a low enough income get serious credits that are de-facto wealth redistribution.

    Those that say the progressive tax code is great, you will find all the fans of it in the lowest brackets, or never employed at all.

  • 8 years ago

    The less you earn, the higher a percentage of your income you owe.

    People who are currently making way less than the poverty level and thus pay no income tax and no tax on food would end up paying a 9% flat tax on income in addition to a 9% tax on everything they spend money on, while millionaires would see a huge tax cut as most of their income is from capital gains, not wages.

    Check out the chart to see the proposed changes. .

  • 8 years ago

    You misunderstand. A flat tax isn't regressive. A flat tax coupled with a consumption tax is. It's easy to understand why, too. The more money you make, the greater the proportion of your money that goes unspent. Money that goes unspent goes untaxed.

  • 8 years ago

    The Flat Tax is possibly the best tax reform we could have.

    All the former soviet states(including Russia) have Flat Income Tax rates and their economies are growing 4x faster than ours.

  • 8 years ago

    I'll be honest, when Obama said he wanted all people to pay their "fair share", I was truly hoping he was going to say he was pushing for a flat tax. Boy, was I wrong. Equality is something most people will agree America was founded on. "All men are created equal". How is it fair or equal to make two people pay different rates? Simply, it isn't.

  • Anonymous
    8 years ago

    For example, the effective rate for the lowest quintile increases from 5.4 percent in 2001 to 8.3 percent in 2014; in contrast, the rate for the top quintile climbs from 26.8 percent to 28.8 percent and that for the top 1 percent of taxpayers rises from 33.0 percent to 33.6 percent over the same period.

    so an 18% flat tax would be a major tax cut for the rich and a major tax increase for the poor.

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