What are the disadvantages of a flat tax?

I haven't heard a compelling argument against a flat tax, but I want to make sure that my support of it is well-informed. So, what's wrong with a flat tax where everyone, regardless of charitable contributions or whatever pays the same percentage of their income in taxes?

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Answer by John (9008)

A flat tax disproportionately impacts the poor. Everyone must spend a certain amount on necessities, like food and shelter. After these expenses are considered, the poor have little or nothing left to pay in tax, but would have to pay the same percentage as those with extra income.

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Reply by coolbreeze911 (2):
I don't buy this. A poor person's house costs much less than a rich person's. And there are incentives for rich people to spend their money on things they might otherwise not, because of tax incentives (A bigger house with greater interest for example) add a comment

posted by Anonymous
This is already disproportionate. The poor pay far less in taxes than anyone else. For years this has been the case, yet our poverty levels continue to stay steady or increase? Clearly the current system of taxing the wealthy more and the poor less is NOT working. add a comment

posted by Anonymous
A bigger house, fancy car, expensive clothing, etc. goes beyond necessity. Wealthy people have disposable income and can make expensive choices after paying for necessities, may poor people do not have sufficient income let alone disposable income. add a comment

posted by Anonymous
So let me get this right... you want to punish the rich for working hard to get where they are in life and make them pay more money in taxes just because they made something of themselves! I just don't get it !!! add a comment

posted by Anonymous
Any way you look at it...Taxes suck. Its one thing to pay taxes and taxes, and taxes but its another when the goverment squanders and wastes the money they do receive. We all live on a budget and the goverment MUST be forced to do it also. God bless America. add a comment

posted by Anonymous
lets increase the taxes on the poor so the rich people aren't punished for not being lazy and stupid and see how much better off as a society we are add a comment

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Answer by Anonymous

'Progressive' tax is socialist nonsense. Big government spending and entitlements usually make everyone poorer because of laziness and stifling the 'free market'. Why should those earning more pay more than their fair share? Do they get more services? No. Flat tax is truly fair.

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Answer by Mudge (33)

Most taxes are "regressive", taxing the poor at a higher percentage than the rich. Income tax is the only tax that tries to be "progressive", i. e. , to tax the rich a higher percentage. Since the rich benefit from government more than the poor do, it they should pay more.

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Reply by Centrifugal (69):
Why do you say that the rich benefit more from the government than the poor do. Rich people aren't eligible for lots of services like welfare, food stamps, financial aid for university etc. add a comment

Reply by coolbreeze911 (2):
Wealthier people have more ways to get out of paying taxes. Their home, investments, business losses etc. I submit that a flat tax that people can not get out of is much better than a system that rewards those who can avoid taxes because they can afford a financial advisor add a comment

posted by Anonymous
Excuse me, but everyone in this country is afforded an education... even illegal aliens. It's no secret. Anyone can find tax breaks if they simply look. Whose fault is it that SOME poor folks don't use their noggins? Not to mention, wealthy people still pay more... so breaks are minimal. add a comment

posted by Anonymous
I agree. add a comment

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Answer by bakerdenn (65)

It has the potential to increase the tax burden on the poor. If the tax is 20%, a person earning 10,000/year would have 8,000 remaining to live on, a person earning 100,000/year has 80,000 remaining.

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Reply by Tolbukhin (78):
It doesn't necessarily increase the burden... the poor person in your example is only paying $2000 for all government services, and the wealthier person pays $20,000 (10 times more! ) for the same services. Does the wealthy person get better national defense, better roads, better libraries? add a comment

posted by Anonymous
I agree with Tolbukhin. This is a simple math equation. The U.S. earned the "land of opportunity" reputation... but in your perfect world... there would be no opportunity because we would all be equals? That's downright Communism. Ever heard of denouncing your citizenship and finding a new country?? add a comment

posted by Anonymous
Would you prefer the wealthy person pays 80k directly to the poor person so they both can have 20k remaining? add a comment

posted by Anonymous
I don't agree with Tolbukhin. A wealthier person doesn't get better road and national defence, but he/she have more valuables to defend, and uses the road more intense than the poor one. So the relative price of defence is lower while the relative gains from the roads are higher. add a comment

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Answer by a24May09 (40)

When compared to the present taxation system in the US, the flat tax deprives the government of opportunities to assist those in financial need, as they presently do with the earned income credit. Those with great wealth do not have incentive to support charitable organizations.

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posted by Anonymous
Charitable organizations are privately owned in most cases, and there are additional emotions unaccounted for that contribute to the desire for donating... it's not a duty, but our free will that determines this. I doubt it would go unchanged. add a comment

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Answer by Anonymous

The basic fact is that no one can win an election based on raising taxes on the poor and middle class.

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Answer by Anonymous

lol idk

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Answer by Anonymous

My 10 cents on the dollar is not the same as a rich persons 10 cents on that same dollar. They get more tax savings then I ever could - even with a flat tax. If there are deductions or exemptions - then it is not a flat tax.

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