04-16-2015, 01:28 PM
I will attempt to answer.
Supposedly. That is why it sounds so appealing for everybody who pays more now (or thinks they pay more, or would like to make more and pay less tax).
That is why it might appeal to some lower income people, 'Stick it to the man by eliminating exemptions.' It might increase taxes for a few people that are rich enough to game the system that they pay less than average now.
That was an attempt to show that the flat tax is regressive and affects low income people disproportionally.
Not quite sure what you are getting at.
It all depends on how the new tax code is written. The current system heavily favors people with discretionary income to invest. They don't pay Social Security, Disability, etc. on non-salary income.
It is a way to try to balance out taxes so that low income people might have a little more even amount of tax compared to discretionary income.
RAMd®d wrote: Are we actually in the same tax bracket?
Supposedly. That is why it sounds so appealing for everybody who pays more now (or thinks they pay more, or would like to make more and pay less tax).
In addition, wouldn't he have access to exemptions that I wouldn't?
That is why it might appeal to some lower income people, 'Stick it to the man by eliminating exemptions.' It might increase taxes for a few people that are rich enough to game the system that they pay less than average now.
Why is the new flat tax now 15% instead of the original 9%?
That was an attempt to show that the flat tax is regressive and affects low income people disproportionally.
Would it be necessary to raise the percentage almost 100% if people who previously made hundreds of thousands or more a year were now paying 9% when they were paying nothing?
Not quite sure what you are getting at.
Is the presumption then a flat tax rate without exemptions would not equal the current tax revenue unless that rate were significantly higher than the lowest rate now in force?
It all depends on how the new tax code is written. The current system heavily favors people with discretionary income to invest. They don't pay Social Security, Disability, etc. on non-salary income.
I'm all for paying as little tax as possible while paying My Fair Share. It's just that I have never been able to wrap my head around the "you make more so you should pay more" tax model.
It is a way to try to balance out taxes so that low income people might have a little more even amount of tax compared to discretionary income.