Don_Dickle@lemmy.world to Explain Like I'm Five@lemmy.worldEnglish · 1 day 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-square19fedilinkarrow-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@lemmy.world to Explain Like I'm Five@lemmy.worldEnglish · 1 day agomessage-square19fedilink
minus-squaretoomanypancakes@lemmy.worldlinkfedilinkEnglisharrow-up39arrow-down1·23 hours agoFlat taxes impact the poor dramatically more than the rich. I think that’s the last thing we need right now.
minus-squaremilitaryintelligence@lemmy.worldlinkfedilinkEnglisharrow-up1arrow-down2·18 hours agoExplain
minus-square667linkfedilinkEnglisharrow-up19·17 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.