posted on Mar, 20 2017 @ 10:16 PM
a reply to: diggindirt
I'm aware of what a flat tax is. I don't agree with it either because in the end it's just a very poorly scaled progressive tax system that hits the
middle class the hardest, alternatively it's implemented as a regressive system where the poor are hit the hardest. If you want a progressive tax
system, just make a progressive tax system and scale it properly, it's a simple system to calculate if you get rid of all the various deductions
involved. However, in common practice, most people use the phrase flat tax as a euphemism for tax cuts.
And I'll repeat, 10% is not viable. It's literally impossible, just like all people having skin in the game. The bottom 50% of people take home 0.5%
of the wealth in this country. Regardless of how much you tax them, they cannot make up any meaningful contribution to the tax base.
Do the math, 10% cannot happen. Anyone who tells you otherwise is lying to you. A 10% flat tax would result in a federal budget (in 2015 again) of
$1.7 trillion. The US budget is $1.1 trillion in discretionary spending, for various reasons that is the only spending that can be reduced. That was
on a $3.7 trillion budget. If ALL of it were eliminated that would still result in $2.6 trillion in spending. That would be a $900 billion dollar
It is mathematically impossible unless you add in a substantial number of other taxes, in which case you end up in the exact same position in terms of
Edit: To add, a tax cut is never a tax cut unless it's also accompanied by a spending cut. If taxes are cut, but spending remains the same it means
taxes were redistributed not reduced.
edit on 20-3-2017 by Aazadan because: (no reason given)