Don_Dickle@lemmy.world to Explain Like I'm Five@lemmy.worldEnglish · 1 month 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-square28fedilinkarrow-up138arrow-down18
arrow-up130arrow-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 · 1 month agomessage-square28fedilink
minus-squarevvilld@lemmy.worldlinkfedilinkEnglisharrow-up1·1 day agoIf you make $50k annually and are taxed at a flat 25%, you’re paying $12,500, leaving you with $37,500. If you make $500k annually are are taxed at a flat 25%, you’re paying $125,000, leaving you with $375,000. It’s a hell of a lot more difficult to support yourself and your family on $37,500 than it is on $375,000.
If you make $50k annually and are taxed at a flat 25%, you’re paying $12,500, leaving you with $37,500.
If you make $500k annually are are taxed at a flat 25%, you’re paying $125,000, leaving you with $375,000.
It’s a hell of a lot more difficult to support yourself and your family on $37,500 than it is on $375,000.