Comment by vunderba

Comment by vunderba 4 days ago

5 replies

Yeah, I can't imagine somebody arguing in good faith that a flat tax is fair unless they are completely oblivious to the concept of the diminishing marginal utility of income.

nerdsniper 4 days ago

A relatively high 'flat tax' might be palatable to the electorate as long as the first $85,000, give or take, was completely tax-free. People would only have to contribute once their own needs are met and they actually have something left over to contribute.

  • toomuchtodo 4 days ago

    That’s progressive taxes. Consider that roughly the bottom 60% of Americans have no federal income tax liability, simply because they do not make enough. That 60% cannot meet their basic needs on their incomes, very roughly speaking. Any increase of taxes on them would be regressive.

    • seanmcdirmid 3 days ago

      It’s kind of progressive. Depends on how high the deductible is, it is definitely semi progressive. Tax bands would still be more progressive, it’s why someone making $50k is paying more state income tax in Alabama than they would in California.

    • nerdsniper 4 days ago

      Indeed. I should rephrase that I think it would be feasible to use propaganda/marketing to redefine what a "flat tax" is, and make the most popular definition one where the basic living wage is exempt and the "flat tax" only applies to the amount over that.

      Through that confusion of language, it might then manage to be popular with both libertarians and progressives.