Ahhh you aren’t using the current definition of “flat tax”. Flat tax is a single rate across all incomes. It still includes deductions, exemptions, credits etc.
I don’t know the correct term for “no deductions tax”. No exceptions? Non adjustable?
Flat means no deductions and an equal pay. It can still be done against brackets and be a flat tax.
No brackets work with credits and deductions. Someone with 100k in income could pay zero in taxes. A flat tax makes them pay taxes by removing deductions.
Personally I’d rather see a consumption tax but that freaks most people out.
“A flat tax is a tax with a single rate on the taxable amount, after accounting for any deductions or exemptions from the tax base. It is not necessarily a fully proportional tax.”
Wikipedia
Interesting! I had never heard that definition before. It’s always been a single rate across the board with deductions still included whenever I’ve heard it discussed. I’ll believe it though. Investopedia, while focused on the greediest of society, at least knows economics.
edit: weird words changed. swipe keyboard got the best of me.
A 30% flax tax is higher than the mythical 90%.
The 90% range had so many deductions only 1 person hit it and even then it’s only on the income that exceeds that limit.
A 30% flat tax with no deductions is much more brutal to income but it’s fair.
Ahhh you aren’t using the current definition of “flat tax”. Flat tax is a single rate across all incomes. It still includes deductions, exemptions, credits etc.
I don’t know the correct term for “no deductions tax”. No exceptions? Non adjustable?
Your bracket concept is how it works now.
Flat means no deductions and an equal pay. It can still be done against brackets and be a flat tax.
No brackets work with credits and deductions. Someone with 100k in income could pay zero in taxes. A flat tax makes them pay taxes by removing deductions.
Personally I’d rather see a consumption tax but that freaks most people out.
“A flat tax is a tax with a single rate on the taxable amount, after accounting for any deductions or exemptions from the tax base. It is not necessarily a fully proportional tax.” Wikipedia
It’s however the law wants to define it. All the bills I’ve seen pushed are a flat rate with no deductions.
Have you seen anyone propose a flax tax with deductions? I have not.
https://www.investopedia.com/terms/f/flattax.asp#:~:text=Key Takeaways 1 A flat tax applies the,sales tax are a type of flat tax.
Employing a flat tax means that taxpayers cannot take deductions or exemptions.
Interesting! I had never heard that definition before. It’s always been a single rate across the board with deductions still included whenever I’ve heard it discussed. I’ll believe it though. Investopedia, while focused on the greediest of society, at least knows economics.
edit: weird words changed. swipe keyboard got the best of me.