4 ms·

Flat tax.

• taylodl 8y ago
  Then you disproportionately tax the poor since more of their earnings are going to consumption taxes such as sales tax and fuel tax. You also aren't solving the problem that money begets more opportunities to make even more money and that over time a huge income disparity appears and class migration stagnates. Which is where the United States finds itself currently. Many people point to the 70% tax rate as the ideal because that's what we had in the "good old days" in the 1950s. That's not a good reason to choose that figure either. There were other factors contributing to the 1950s being the "good old days." That's why finding an "ideal" tax rate is a challenging problem.
  • bigpoo 8y ago
    In the 40's and 50's our marginal tax rate was higher then 70%. In fact it exceeded 90% for a period of time. However this is the marginal tax rate which means you don't pay that except for earnings over a certain dollar amount. Also with all the loopholes in our tax law the effective tax rate was closer to 40% anyways.