Wouldn't a flat tax of 35% be fair and a way to level the playing field?
When the tax levels for the .01%ers is 15%, we could get out of debt quickly with a fair tax!
Watch this video!
- 7 years agoFavorite Answer
If you want fair, we would also need Wall Street to pay sales tax and corporations to pay the same 35% as other "people". Not to mention removing the income cap on Social Security. Of course we would need Universal Health Care, because millions more of us would not be able to afford the ever increasing premiums of big insurance.
- ZeltarLv 67 years ago
I’m glad you watched the video. Those are staggering numbers, when a CEO makes 380 times what the average worker (not the lowest wage worker) makes. That is, the CEO makes in 1 hour what his average employee makes in a whole month.
So, if you understand that concept, you can then see why a flat tax, regardless of the rate, does not hurt the rich. It’s about understanding the rich. See, flat taxes are based on what you spend, not on what you make. And, the rich don’t need to spend all they make. That’s a concept completely foreign to 90% of our population because they need ALL the money to live on. But, anyone that has watched movies like the 1985 film, Brewster’s Millions, will recall that it is VERY DIFFICULT to spend loads of money in a short amount of time. People cannot consume millions of dollars of products in one month. So, the rich do not consume the money. Instead, the money goes to work like into investments. The money, quite literally, creates more money!
Let’s say I make a 24 Million each year (or 2 million a month). And, because I have no desire to retire at my young age, I run a company 50-60 hours a week employing a few thousand people. Like the people that work for me, I eat, buy clothes, and spend money on recreation. Though, because of my wealth, I can go out more often and to fancier places. Yet, I don’t have much time in the week to do it. I get a spouse, who will spend money full time. Still, I have trouble spending more than $50,000 a month. And, since sales tax is only on consumables, that means I paid sales tax on just $25,000 a month. Guess what? That means I’m paying a flat tax on just 1.25% of my income. So, a flat tax of 35% means I pay an effective tax of just 0.004375% of my income. All my employees and other citizens of this country just gave me a gigantic tax savings! Thank you!
Meanwhile, Mr. & Mrs. X make a combined $72,000 a year, or $6,000 a month. There costs include non taxable items like Health Care, Insurance, and their modest mortgage. They use one third of their income on consumables. The $2,000 is taxed at 35%, so $700 goes to Uncle Sam. In relation to their overall income, their effective tax rate is 11.667%.
My question to you… do you really think a flat tax is fair? You think that it’s fair that Mr. & Mrs. X pay 11.6667% of their income on taxes while I pay just 0.004375% of my income on taxes? Me and my other 1% friends already own 40% of the wealth in this country. Why do you want the burden of paying for all the services, while I get to keep paying you dirt cheap and reap all the benefits such as the education I’ve been paying the government to give you so you can be trained to work for my company?
- pmc123Lv 67 years ago
How would you handle the subsidies that would have to be enacted to keep all the people making low wages for penury? Fair? Fair is a place where you eat junk food and get sick on rides. Equitable is what you want - but equitable is not defined by a single straight line.To be equitable, it needs to effect each person equivalently - something a flat tax cannot do.
- Gunny TLv 67 years ago
The old USSR had 3 tax brackets, rich, moderate, and poor. The poor paid no tax, the moderate paid 7%, the rich paid 13%. That worked fine since the Russian Revolution in about 1916, untill they tried to compete with Reagan's Starwars program. 35% is absurd.
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- SGMLv 77 years ago
Russia's 13% flat tax completely turned around their failing economy.
Fine, let's set the first $15,000 tax free and tax anything above it at 15%.
Add a balanced budget amendment to the US Constitution and everything will be in order.
- GungyLv 67 years ago
....as we (( continue )) to see the 47% of the working country pay nothing? This pitting the top vs. the bottom while the bottom is now 1/2 the nation who works and consumes most of what fed tax fund and pays "0" to get it is ridiculous.
You are not going to get a lot of favorable responses to this from those who are driven by common sense. Politics driven by emotion is exactly why the entire nation has one foot in the economical toilet.
As the Treasury Dept. has already published that the 2012 tax year will see the highest collection of taxes in U.S. history, all you can do is focus on the top 1 % paying more while nearly 50% of the nation pays nothing now. What's wrong with that picture????
- nostradamus02012Lv 77 years ago
and as long as this inequality exists we will never truly be prosperous.
it's simply not possible for such a small percent of the people to have such a high percentage of all wealth.
and because there is now even more money in our politics and literally all that money is owned by such a small number of people - AND our govt is so deeply prone to bribery - which is called campaign contributions - it is highly unlikely that anything of any substance will EVER change.
until this preposterous house of cards collapses...
- neato1975Lv 67 years ago
Not really. Paying 35% in tax wouldn't leave much for those in low income brackets to live off of.
- GriggnaxLv 77 years ago
A 35% tax on someone who only makes $30K would be devastating. It would drive millions more people into poverty.
- FrankLv 77 years ago
The housing market would quickly collapse is you took away the mortgage interest deduction.