No matter how long it takes, I will fight for equality. The best system for taxation equality is providing a flat tax above a certain poverty level or income level so that everybody pays something to support our country. If the poverty level is $20,000 for a family of four, let’s keep federal taxes low to nothing since there are already state taxes, social security taxes, and medicare taxes to pay. However, we should probably encourage further education on why it’s probably not a good idea to have any more children if one is having difficulty taking care of themselves, despite the misplaced policy of a $1,000 child tax credit for certain income earners and below.
Perhaps the flat tax income threshold is at $33,000, the halfway point between the top and bottom 50%. After $33,000, everybody pays a flat tax rate of 20% on all income, which includes investment, dividend, and interest income. No loopholes, no deductions, 20% is 20%. If you’re making under $33,000, your tax rate is lower.
Or perhaps the income threshold is above $106,800, where social security and medicare taxes disappear. We tax people progressively up to $106,800 and then a flat tax afterward. One of the big arguments some have against a flat tax is that it’s regressive, since the rich don’t pay any more social security and medicare taxes after $106,800. Well guess what? Although you don’t have to pay those taxes above $106,800, you also don’t get any benefits either! Do you really think there is a free ride with our government of waste? Of course not. Please understand this point.
With a flat tax system after a certain amount of minimum income, the person who makes 10X more, pays 10X more in absolute dollars. Nobody can logically argue against equality. But, for those of you who feel that discrimination is the way to go, here’s a story of Bar Stool Economics which I stumbled across on online that hopefully sheds some light.
BAR STOOL ECONOMICS