LogFAQs > #931252750

There's one inaccuracy in the post: Income tax is only collected once -- you're not "paying income tax on [your] money they already TAXED". If s/he thinks that owing money during the income tax filing period is double taxed, s/he doesn't understand why s/he is paying in.

Mead posted...

There should be a flat tax percentage on everyone

A flat tax is regressive.

Let's say it costs $20k to pay for the necessities of living. With a flat tax of, say, 20%, a person making $20k would be paying $4k in taxes, leaving $16k to pay for those $20k in living expenses. A person making $1M would be left with $800k to pay for those $20k of living expenses.

With the current graduated system, the government has determined that it takes $20k to live, so doesn't collect income tax on the first $20k. So, that person making $20k has $20k left to pay for those $20k of living expenses.

Which system would you rather have?

I haven't looked too much into it, but people have been advocating for what they call the Fair Tax system, which I believe abolishes personal income tax and replaces it with a national Sales Tax coupled with everyone getting a rebate from the gov't to cover the basic cost of living.
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Montreal Expos (1969-2004)
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