Monday, April 3, 2017

Flat Tax vs. Progressive Tax

Flat Tax vs Progressive Tax
I am a believer in the flat tax, rather than progressive tax. In my mind, the flat tax is much fairer to everyone, even though the some people seem to think it is unfair to poor people. They say that it is only “making the poor people poorer”, and that it is very unfair that the rich people don’t have to pay more. However, this is simply ridiculous. If one person makes $30,000 with a 10% tax rate, they will pay $3,000. Compare this to someone who makes $100,000. This person would be paying $10,000 in taxes. Sure, the second person would come away with $90,000 compared to the $27,000 of the first person. And even though the one person is coming away with three times more money in the end, they are also paying three times more in taxes. That is the only way that is fair to everyone.
I read this comment agreeing with flat tax on one of the links, and I agree with it completely:
“Two people earning $50,000 each will pay together less tax than one person having $100,000 on the progressive tax system, so simply $50000+$50000 is not = to $100000. This generates all kind of problems, including that you have to have a monster like IRS to figure out where each dollar came from.”

This is so great and is a wonderful point. It isn’t fair to a single person who makes $100,000 to pay more taxes than a couple who has a combined income of $100,000. With the progressive system, that is how the turnout would be, which isn’t fair. This is why the flat tax system would be much better for us in my eyes; it seems to be fairer for every person in the system. It is a simpler and more effective way of taxing all people.