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 5 days ago by Patnou to c/explainlikeimfive
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[–] mrcleanup 2 points 3 days ago

Even if it works exactly like that, let's say you are poor and barely make enough to live, you still have to give 20% (as an example) to the government, even if you are fucked after and can't pay rent or buy food. If you make 20% more than you need, you end up with nothing left after. Rich people may end up paying more, sure, but a flat tax still screws over the poor as a rule unless there is some provision that it only starts after X income, and you know that threshold will always be set too low.