Don_Dickle@lemmy.world to Explain Like I'm Five@lemmy.worldEnglish · 1 day agoELI5 What would happen short term if the US got rid of income taxes and went to a flat rate? What would be the long term outcome?message-squaremessage-square19fedilinkarrow-up133arrow-down18
arrow-up125arrow-down1message-squareELI5 What would happen short term if the US got rid of income taxes and went to a flat rate? What would be the long term outcome?Don_Dickle@lemmy.world to Explain Like I'm Five@lemmy.worldEnglish · 1 day agomessage-square19fedilink
minus-squaremilitaryintelligence@lemmy.worldlinkfedilinkEnglisharrow-up1arrow-down3·21 hours agoExplain
minus-square667@lemmy.radiolinkfedilinkEnglisharrow-up20·20 hours agoIf one earns $10,000 per year, a $2,000 annual tax is 20% of annualized income. If one earns $100,000 per year, it’s 2%. The less one earns, taxes are a greater proportion of total income. Often, flat tax concepts come (or should come with) tax exemptions for actual low-income folks.
Explain
If one earns $10,000 per year, a $2,000 annual tax is 20% of annualized income.
If one earns $100,000 per year, it’s 2%.
The less one earns, taxes are a greater proportion of total income.
Often, flat tax concepts come (or should come with) tax exemptions for actual low-income folks.