3 ms·
Sales taxes are regressive. A 10% sales tax is more of a poor person's income than a wealthy person's income. Flat tax is also funny. Because it doesn't mean g
by bena 5y ago
Sales taxes are regressive. A 10% sales tax is more of a poor person's income than a wealthy person's income.
Flat tax is also funny. Because it doesn't mean getting rid of loopholes and deductions, it means taxing every dollar the same. Effectively raising the taxes on those making less. Right now we have a progressive tax rate. Where the first X dollars are taxed at A%, the next Y dollars at A+5%, and so on.
Deductions would still exist because at some point someone is going to make a good point that that money was just taxed. Or that the money went to the same goal as the tax would have. Deductions are there to find out what your taxable income is. It affects how much you owe because 10% of 900 is not the same as 10% of 1000.