How do flat taxes cost the middle and lower classes more than the wealthy and th

Jump to Last Post 1-4 of 4 discussions (4 posts)
  1. Xenonlit profile image61
    Xenonlitposted 11 years ago

    How do flat taxes cost the middle and lower classes more than the wealthy and the corporations?

    Flat taxes can benefit the wealthy and the corporations when the public pays for infrastructure, business subsidies and other support for corporations. The corporations make profits, but pay no more in taxes than the consumers who paid for the infrastructure AND the products that they sell. Please stay on topic.

  2. Billy Hicks profile image81
    Billy Hicksposted 11 years ago

    It's the "impact" of the money. I did a hub on this a couple weeks ago, but here's a quick example:

    Assuming a 15% flat tax:

    Someone who makes $20,000 a year would pay $3,000 in taxes, leaving them $17,000 to live on.

    Someone who makes $100,000 a year would pay $15,000 in takes, leaving them with $85,000 to live on.

    The $3,000 has a substantial impact on the person only making $20K, while there is no significant "life-style change" for the person making $100K.
       
    It's the same with businesses, the impact is larger on those with less income.

  3. WritingPrompts profile image65
    WritingPromptsposted 11 years ago

    One thing I saw proposed (by McCain 4 years ago) was a high standard deduction and then a flat tax after that.  It would have given you the first $27,000 or so that you earn free and clear, and then tax everything after that at some set rate. 

    Without that deduction, a 10% tax could really hurt people who are poor and barely getting by on their low income.  Wealthy people are able to live fine on what's left over though, and so it seems unfair if the taxes are making it hard to feed and clothe your family.

  4. LandmarkWealth profile image67
    LandmarkWealthposted 11 years ago

    A Flat tax on the contrary in places where it has been used has generated more revenue not less from the wealthiest of individuals.  The reality is that the increased revenue is more a result of the efficiency it creates by not diverting unecessary resources to the regulatory aspect of taxes.  This assumes that the complex 8000 pages of tax law is consolidated into a flat tax with no itemized deductions of any significance.

    The tax rate regardless of how progressive it is has always generated the same revenue as a percentage of GDP.  In 1952 the highest rate was 92% and the Gov't collected about 18% of GDP.  In 1988 the highest rate was 28% and the Gov't still collected 18% of GDP.  For nearly a century regardless of the rate the Gov't collects the same revenue as a share of GDP. The range is always 15-20%, usually averaging 17-18%.

    The only way to really increase revenue is to increase GDP.  The simplification of the flat tax goes along way to increase efficiency, and hence increase economic activity which is good for all of us. 

    Regarding the corporate tax...It is essentially a myth.  It doesn't really exist.  Every corporation both public and private is concerned first with their net after tax return, the same as a worker looks at their take home pay.  Every tax they incur is already priced into the goods and services the consumer pays for.  It is always passed on to the consumer in price increases along with various other expenses they incur.

 
working

This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://corp.maven.io/privacy-policy

Show Details
Necessary
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
Features
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Marketing
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Statistics
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
ClickscoThis is a data management platform studying reader behavior (Privacy Policy)