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 month ago by Patnou to c/explainlikeimfive
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[โ€“] SimpleMachine 2 points 1 month ago (1 children)

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.

[โ€“] elephantium 0 points 1 month ago* (last edited 1 month ago)

Okay. Thank you? I think you replied to the wrong person. I wasn't asking for the definition of a flat rate income tax.