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Originally Posted by sperry
Now I don't claim that the numbers above are really accurate. I don't have real data on how much people make/pay, but they should illustrate my point. Will there be people paying more under a flat tax? Probably, but I'll bet the majority of people paying more will be in the upper-middle to filthy-rich classes... and that's like what 5% of Americans? Most people will feel tax relief, and many in the middle-class like you and I will end up paying just about the same as we're paying right now.
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No, actually. I think its pretty much been proven that a flat tax will cause poor people to pay more taxes (as under $15,000 pays less then 10%) while the rich (6 figures a year) are paying closer to 25%-35% (and I think I may be a little conservative on these numbers too).
Assuming that flat tax rate would be 10%, the government would lose lots of money (15% to 25% from a 6 figure salary) and not make up very much from the lower class (5% extra from those that make less then $15k). Of course, this is assuming that the people and corporations making over 6 figures a year in this country pay there taxes honestly. Yes, there are more poor in this country then rich. Looks like about 30% of the population makes under $15k a year. About 14% make over $100k. But since we are dealing with percents here, 15% of $100k >> (5% of 15k) * 2
A flat tax would hurt the government financially, increase taxes for the poor and decrease taxes for the rich. Besides, if a flat tax was ever passed, I don't think it would take long for rich corporations/individuals to find a way to finagle out of paying their fair share, thus making a flat tax bad for the government and bad for people lower then middle class.