How is the Flat Tax Regressive ?, page
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reply posted on 23-10-2011 @ 11:02 AM by EMane
Sure. There are several different kinds of taxes as everyone knows; sales, property taxes, capital gains taxes, income taxes, payroll taxes, etc. Each of these is designed to target different groups of people in different ways. The sales tax, for instance is considered to be a regressive tax. The poorer you are, the harder it hits you. Everyone needs food, clothes, toothpaste, shampoo, etc. regardless of how much you make. The less you have, the more as a percentage of your income that you'll be paying on these things. This is an empirical fact; wealthier people spend less as a percentage of their income, and invest more. Therefore, the sales tax hits poorer people (at least as a percentage of income) than wealthier people. Someone living at the poverty line might spend 70 percent of their income on the necessities of life, all subject to the sales tax, while a millionaire might only spend 10 percent of his yearly income making it subject to the sales tax.

The logic behind a progressive income tax is that it counter-balanlances this naturally regressive sales tax. It doesn't seem to make a whole lot of sense having the poor paying a larger portion of their income in taxes than the rich who are far better positioned to bear the tax burden.

Futhermore, there is a distinction which people have decided to draw between capital gains taxes (the money you make by investing money) and income taxes (the money you make by doing actual work). Capital gains taxes are taxed at 15 percent, while income taxes are almost invariably more, even for low income earners. It's no secret that many wealthy people make their fortunes through investment, and certainly they invest at a far higher rate than poor people. Therefore you're looking at a situation where someone super-rich can pay close to 15 percent on their income for the year (because most of their income comes from investment) while poor or middle class families could be paying 20-30 percent in income taxes. Again, a progressive tax structure would be designed to counter-balance the natural regressiveness of the capital gains system.



reply posted on 23-10-2011 @ 11:03 AM by wayouttheredude
reply to post by mikejohnson2006



18% flat tax hurts the poor most of all. If a low wage worker say a waiter or bus boy is paid $500 per week. That is 26000 per year. At 18% this poor guy will lose $4,680 to Big Brother. How is this worker ever going to escape poverty with a regressive tax that lets him keep only $410 per week of his measly check.

I say end the income tax and pay for a trim downed government with fees, tariffs customs duties and other big business sourced revenue generation methods. You tax business and trade and your nation grows. You give free trade to business and tax the workers and you bleed the nation and hurt the poor and middle class.


reply posted on 23-10-2011 @ 11:08 AM by TDawgRex
Originally posted by wayouttheredude
reply to
post by mikejohnson2006



18% flat tax hurts the poor most of all. If a low wage worker say a waiter or bus boy is paid $500 per week. That is 26000 per year. At 18% this poor guy will lose $4,680 to Big Brother. How is this worker ever going to escape poverty with a regressive tax that lets him keep only $410 per week of his measly check.

I say end the income tax and pay for a trim downed government with fees, tariffs customs duties and other big business sourced revenue generation methods. You tax business and trade and your nation grows. You give free trade to business and tax the workers and you bleed the nation and hurt the poor and middle class.


$12.50 a hour is a pretty good wage for a bus boy or waiter. Most make less than that.

I get your point though. Just sayin'


reply posted on 23-10-2011 @ 11:08 AM by sonnny1
reply to post by mikejohnson2006



Cause a Flat Tax is still a Flat "income" Tax. Try National Sales Tax,no tax on food, housing ,health,and you might get people to wake up.No tax on investments. No VAT Tax either. End THE IRS,End the FED.
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