this post was submitted on 31 Jan 2025
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Explain Like I'm Five

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ELI5 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? (self.explainlikeimfive)
submitted 1 day ago by Patnou to c/explainlikeimfive
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[–] toomanypancakes 38 points 1 day ago (1 children)

Flat taxes impact the poor dramatically more than the rich. I think that's the last thing we need right now.

[–] militaryintelligence -1 points 19 hours ago (1 children)

Explain

[–] [email protected] 19 points 18 hours ago

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.