Flat Tax, Flat Out Lie 0
Bloomberg takes a look at flat taxes. They conclude (my words, not theirs) that it’s one more trick for making the rich richer and the poor poorer.
Read the whole thing:
(snip)
Would a flat tax be “fairer” than the current system? Perry plans to call for a rate of 20 percent, which is lower than today’s top rate of 35 percent and higher than today’s lowest rate (which is zero). If your income currently puts you in a bracket higher than 20 percent, a 20 percent flat tax constitutes a tax cut. If you’re in a bracket lower than 20 percent, a flat tax will constitute an increase, unless it comes with lots of deductions, in which case it’s no longer flat. If lowering taxes on high incomes and raising taxes on low incomes would be an improvement, then a flat tax is fairer than the current code. Otherwise, it isn’t.
