Hardships on Flat Tax
In 2010, the top 20% of the nation 's population owned 85.1% of the nation 's income and 80% of the nation’s population only owned 14.9% of the nation’s wealth. Five years later, the top 1% of the United States nation now owns more additional income than the bottom 90% of the nation 's population. Enacting a flat tax would make people pay the same percentage of their income. Even though a flat tax would enhance the economy 's long-term advancement, a flat tax should not be implemented as the United States new way of taxation because the top wealthiest 1% possess 40% of the nation 's wealth and it penalizes the low-income segment of the population.
As of today, the current U.S. tax system, a progressive tax, is a huge …show more content…
A very important reason a flat tax should not be implemented as the United States new way of taxation is because it penalizes the low-income segment of the population. Laurence Kotlikoft states that a flat tax would be “hitting the poor on every dollar they earn and exempting the rich on virtually all of their earnings.” This indicates that implementing a flat tax favors the rich, whereas it would be hurting the poor. While the rich are keeping more of their money, the middle class is penalized and would pay higher taxes than they would have originally needed. Middle-class and working-class people are what stimulate the economy. In addition to, in Holley Ulbrich’s article, Flat Tax Is Class Warfare, she states, “the attraction of simplicity hides a big change in the distribution of tax obligations among the poor, the middle class, and the rich.” Holley is ultimately stating people are more enticed by the simple nature of the flat tax that they tend to fail to notice the hardships on those the flat tax would undermine. For example, if a flat tax of 15% was to be effectuated, someone who acquires $100,000 annually would be left with approximately $85,000 whereas an individual who acquires $35,000 annually would only be left with roughly $29,000. It is clear the individual who originally made $100,000 would be better off with a …show more content…
Allowing the top 1% of the population to pay an even lower tax than now, empowers the rich to possess even more of the nation’s money. Recent studies have shown that throughout the past years, the top 1% of the population has obtained 40% of the wealth in America. In 2007, it was recorded that the richest 1% of the American population owned 34.6% of the country’s total wealth. Presently, that same 1% of the population has gained at least 6 more percent of the nation’s money. How much more will they obtain in the next 10 years? In a recent poll studies, according to Gallup, the everyday American works an average of 47 hours per week. Even after all of their hard work, these average Americans still do not even make up close to half of the nation’s economy. Nevertheless, putting a flat tax into effect would only penalize these hard working Americans more than they are now and the top 1% would sky rocket above the economy’s wealth system today. Even some countries that had previously enacted a flat tax are repealing those laws because the flat tax perception was being overblown. A former Michigan legislator’s staffer, Maryalene LaPonsie, says “not only would a flat tax widen wealth inequality in the country, opponents say it might allow the rich to duck paying taxes on a large
In 2010, the top 20% of the nation 's population owned 85.1% of the nation 's income and 80% of the nation’s population only owned 14.9% of the nation’s wealth. Five years later, the top 1% of the United States nation now owns more additional income than the bottom 90% of the nation 's population. Enacting a flat tax would make people pay the same percentage of their income. Even though a flat tax would enhance the economy 's long-term advancement, a flat tax should not be implemented as the United States new way of taxation because the top wealthiest 1% possess 40% of the nation 's wealth and it penalizes the low-income segment of the population.
As of today, the current U.S. tax system, a progressive tax, is a huge …show more content…
A very important reason a flat tax should not be implemented as the United States new way of taxation is because it penalizes the low-income segment of the population. Laurence Kotlikoft states that a flat tax would be “hitting the poor on every dollar they earn and exempting the rich on virtually all of their earnings.” This indicates that implementing a flat tax favors the rich, whereas it would be hurting the poor. While the rich are keeping more of their money, the middle class is penalized and would pay higher taxes than they would have originally needed. Middle-class and working-class people are what stimulate the economy. In addition to, in Holley Ulbrich’s article, Flat Tax Is Class Warfare, she states, “the attraction of simplicity hides a big change in the distribution of tax obligations among the poor, the middle class, and the rich.” Holley is ultimately stating people are more enticed by the simple nature of the flat tax that they tend to fail to notice the hardships on those the flat tax would undermine. For example, if a flat tax of 15% was to be effectuated, someone who acquires $100,000 annually would be left with approximately $85,000 whereas an individual who acquires $35,000 annually would only be left with roughly $29,000. It is clear the individual who originally made $100,000 would be better off with a …show more content…
Allowing the top 1% of the population to pay an even lower tax than now, empowers the rich to possess even more of the nation’s money. Recent studies have shown that throughout the past years, the top 1% of the population has obtained 40% of the wealth in America. In 2007, it was recorded that the richest 1% of the American population owned 34.6% of the country’s total wealth. Presently, that same 1% of the population has gained at least 6 more percent of the nation’s money. How much more will they obtain in the next 10 years? In a recent poll studies, according to Gallup, the everyday American works an average of 47 hours per week. Even after all of their hard work, these average Americans still do not even make up close to half of the nation’s economy. Nevertheless, putting a flat tax into effect would only penalize these hard working Americans more than they are now and the top 1% would sky rocket above the economy’s wealth system today. Even some countries that had previously enacted a flat tax are repealing those laws because the flat tax perception was being overblown. A former Michigan legislator’s staffer, Maryalene LaPonsie, says “not only would a flat tax widen wealth inequality in the country, opponents say it might allow the rich to duck paying taxes on a large