Quote:
Originally Posted by iggy_oi
Because poor people usually have to spend all of their money and rich people usually can’t spend all of their money.
Also anyone advocating for a flat sales should really look into how much tax revenue GST accounts for. It shouldn’t take too long to figure out how pie in the sky the concept of expecting new sales taxes to make up for all income and corporate tax revenue really is.
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Sure, but you're never going to get buy in from wealthy people by saying "you can't spend all your money, so we're going to take more of it."
If you were to set a flat tax rate of 30% with a first-30K exemption, everyone making 60K or less would be paying the same or less in income tax than they are today. You end up collecting more from everyone in between 60k and 250k/yr. This is a large portion of the population. Raise the progressive tax rate of salary earned over 250k isn't going to make that big of a dent.
Again, why are poor people worse off under this system than they are today?