Boehner and the Republicans have brought back the worst tax code idea our country has ever seen. The flat tax, touted as “it will only take two sheets of paper to file,” is nothing but a gift to the wealthy at the expense of the working poor and the middle class.
Nothing about the flat tax is fair and simple. Republicans are suggesting everyone paying the same (between 17-20% depending on whose plan you’re talking about) will level the playing field of taxes and importantly will save “billions of hours” of tax preparation time.
Here are the main reasons the flat tax being fair and simple are a load of bullhonkey:
- The bottom 20% of Americans have a tax rate of -4.6%, which is basically a tax subsidy. It offsets the cost of the payroll taxes on Medicare and Social Security. Charging 60 million people 17% of their already low-income will destroy them and the economy with them, create an unimaginable demand for public assistance and drive millions below the poverty line.
- This chart shows the average tax rates of each income bracket. You’ll notice that a flat tax of 17% affects everyone, but only some in a good way. Can you guess who?
That’s a massive tax increase on everyone but the top 1%. Slightly more than 3 million people will have their taxes lowered, while the other 315 million pay more, with the bulk coming from the bottom 40%. On top of that, capital gains and investment income would be removed from the roles altogether. Want to see corporate America take a dive? No problem. The flat tax will have a slew of corporations dissolving in favor of sole proprietorships whose income is completely tax-free.
Basically, the trade-off for the simplicity of “two sheets of paper” is your future. Your children’s future. Our country’s future.
How pray tell will we pay for it? We won’t have to. With increases to astronomical amounts for 99% of Americans so the wealthy can have even more, we’ll be reduced to little more than indentured servants.
Of course if they have their way there will also be no public assistance and the Affordable Care Act will be repealed, so we’ll all die of starvation and common colds anyway.
Watch Boehner’s ridiculous flat tax summary, “Two Sheets Of Paper.”
Featured Image: Screen Capture