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?
SimpleMachine @ SimpleMachine @lemmy.world Posts 0Comments 32Joined 2 yr. ago
SimpleMachine @ SimpleMachine @lemmy.world
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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.