Submitted by [deleted] t3_yrvq3s in massachusetts
Bobbydadude01 t1_ivzhhdp wrote
Reply to comment by Intrepid_Priority154 in Can someone explain question 1 by [deleted]
Learn what equity is
Intrepid_Priority154 t1_ivzhka1 wrote
Teach me. I want to hear this explanation.
Bobbydadude01 t1_ivzk1pu wrote
Let's say the tax rate is flat nationwide. This puts extreme pressure on the lower class since each dollar is worth more to them as they have less of it.
This tax isn't going to ruin any millionairs way of life. There going to make less money but they will still be able to lead a lavish lifestyle. But if this tax was levied on everyone then it would harm people making min wage alot. When your living paycheck to paycheck any increased cost can be the tipping point.
The federal individual tax revenue was 2.04 trillion. That means if the tax burden was evenly split between all taxpayers it would be a little under 14,000 dollars. That's almost more then minimum wage workers make a year. That's why we use a progressive tax system.
Intrepid_Priority154 t1_ivzl3h5 wrote
How do you get to the $14K?
Bobbydadude01 t1_ivznuah wrote
Individual federal income tax / number of taxpayers.
That would be how much everyone would need to pay to raise the same revenue we do now if we did it "fairly".
Intrepid_Priority154 t1_ivzo7if wrote
Hopefully you see the flaw in your analysis.
Bobbydadude01 t1_ivzpi6f wrote
Point it out or don't bother leaving a comment
Intrepid_Priority154 t1_ivzrbad wrote
Interesting. So your analysis and what I am taking away from it is that someone making $15/hour ($30K a year) pays $14K. And someone making $1M is also paying $14K if it’s a flat tax system. Not the person making $30K pays $1,500 (5%) and someone making $1M pays $50K.
Bobbydadude01 t1_ivzuljd wrote
That section was explaining the problem with raw tax values. It's an idea that libertarians love for some reason.
My point remains the same.
Intrepid_Priority154 t1_ivzw54v wrote
Your point was awful and makes 0 sense. I have never heard anyone explain a flat tax that way.
Bobbydadude01 t1_iw0dyka wrote
I was explaining the issue with holding fairness above everything else. Equal payment is the most fair system but it's awful.
Increasing the lower classes financial hardship while our upper class can afford taxes is wrong.
Intrepid_Priority154 t1_iw0e4m5 wrote
No one has ever made that argument that everyone should make a payment the way you described. Fair share is pick a percent and everyone pays that percent of income. 5% would be the same for everyone.
Bobbydadude01 t1_iw0e7kg wrote
I was explaining the issue with holding fairness above everything else. Equal payment is the most fair system but it's awful.
Increasing the lower classes financial hardship while our upper class can afford taxes is wrong.
Bobbydadude01 t1_iwjhg9w wrote
Also I did full math and it was a flat tax on all income (wage, investment, everything) it would need to be 24%. That's before state taxes and such this is just federal. This means that if you make minimum wage and work 40 hours a week 52 weeks a year you would take home a whopping 11,460% a year. That's why below the poverty line. The line that's already incredibly lower then what's required to survive.
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