Don_Dickle@lemmy.world to Explain Like I'm Five@lemmy.worldEnglish · 6 days 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-square26fedilinkarrow-up137arrow-down18
arrow-up129arrow-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 · 6 days agomessage-square26fedilink
minus-squareSimpleMachine@lemmy.worldlinkfedilinkEnglisharrow-up1·3 days agoA flat rate typically implies a set percentage of income, regardless of how much you make, with no breaks or reductions. So, a 10% flat rate on someone who only makes $30,000 is $3000, while the guy who makes $5,000,000 pays $500,000.
minus-squareelephantium@lemmy.worldlinkfedilinkEnglisharrow-up1·edit-23 days agoOkay. Thank you? I think you replied to the wrong person. I wasn’t asking for the definition of a flat rate income tax.
A flat rate typically implies a set percentage of income, regardless of how much you make, with no breaks or reductions.
So, a 10% flat rate on someone who only makes $30,000 is $3000, while the guy who makes $5,000,000 pays $500,000.
Okay. Thank you? I think you replied to the wrong person. I wasn’t asking for the definition of a flat rate income tax.