Don_Dickle to Explain Like I'm FiveEnglish • 20 hours 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-square17arrow-up134arrow-down18
arrow-up126arrow-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 to Explain Like I'm FiveEnglish • 20 hours agomessage-square17
minus-squaretoomanypancakeslinkEnglish36•19 hours agoFlat taxes impact the poor dramatically more than the rich. I think that’s the last thing we need right now.
minus-square@[email protected]linkfedilinkEnglish17•13 hours 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.
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.