we need to abolish private property (not personal property), in order to not have any taxation, instead u tax the corporations, which The State owns, meaning that instead of workers being taxed they are now taxing the profits of corporations in which The Government then owns
@@JjAnterosare you in China? Because the American Government does not "Owen" businesses. And if you say, the Government needs $3 Trillion a year of tax income and you just stop taxing everyone and put it all on the businesses the are either Privately OWNED or even Corporate Owned (which means there are Thousands of owners thru Stocks) , the government will have a major short fall of income to keep it running. So now, you want to make up that missing income of say $1 Trillion tax dollars thru businesses. Do yiu actually believe that businesses are going to keep their prices the same and just pay more in taxes? HELL NO! Those businesses will raise the cost of their products they are selling to us costing us more money. But it doesn't stop there. As the price goes of the product goes up, you will pay more at time of purchase in Sales Tax. In the end, you could easily pay double the amount in the EXTRA living costs than the taxes you previously paid. I'm for a Flat 8% Tax with a National Luxury Tax of 8% on the purchase of anything over the cost of $5000 with the exception of Real Estate and certain vehicles. A Toyota Avalon would be considered a Luxury were as a Lamborghini and Ferrari would be. A boat over $50,000 would be a Luxury cause Millionaires don't buy a $50,000 boat, they buy a multimillion dollar yacht!
While I personally support progressive taxing, it is quite nice to look at flat taxing from a different perspective and look at the positive sides of both systems!! :) Thanks for this amazingly made and super interesting video once more!
The only people that support progressive taxing are people that dont earn a good income if you earned a good income you would be pissed off by the amount the government steals from you Say for example i live in California i made 40k a year that puts me in the 12% federal tax bracket the first 10k is exempt from taxes and only 30k of my income will be taxed that is 3600 dollars in federal taxes and for state taxes 6% of that 30k will be taxed thats 1800 in state taxes now i will have payed 5400 in taxes now say i made a 100k that puts me in the 24% federal tax bracket the first 10k is exempt and 90k is taxed thats 21600 and my state taxes will be 8370 coming to a total of 29970 that is 5x the amount that someone with 40k pays now say i make 500k a year my federal tax bracket is 37% the rate at which i would get taxed is 3x higher than someone with 40k but back to the calculation 37% of 500k is 185000 in federal taxes and my state tax comes to 36725 that is 221725$ in taxes nearly half of my salary that is 41x the amount someone with 40k a year pays now say everyone was taxed at a flate rate of 15% federal and 5% state a guy that makes 40k pays 8000 a guy that makes 100k pays 20000 and a guy that makes 500k pays 100k that is more than 10x the amount someone with 40k a year pays and in my opinion that is the fairest it gets. Progressive tax system is bullshit and needs to stop the government is stealing money out of the pockets of hard working individuals and gives it to the people at the bottom of the bracket so they are essentially playing some sort of fucked up robin hood that robs you blind of your hard earned money. I work in finance in a really tough and stressful environment my income is based on my performance so i have to constantly work under pressure to make more money and if the market doesn’t perform well i lose money I make roughly 300k a year and i pay a 125k in taxes i work 15 hour days 6 days a week thats 4680 hours a year and about 1923 of my hard working hours going into the pockets of other people but someone making 40k a year working 8 hours a day 5 days a week works 2080 hours a year and pays 400 hours in taxes so hours wise i pay roughly the same amount of time that he works in a year for free 1923 is not very far from 2080 i pay 4.8x more with my time than a person that pays only 400 hours in taxes so i work double his hours and pay 23x the amount he does in taxes. What kind of fucking equality are they getting at here a world where the top bracket has to lose half of their money so people in the bottom bracket can get welfare cheques and go buy crack you dont believe me? I know a drug dealer who makes 20k a week only working on Wednesday for your information this is the day welfare cheques are given out he literally calls it willy Wednesday and also pay for a shitty school system that fails everyone and people that refuse to pay their student loans and political parties that want to make post secondary education free at the expense of tax payers so the flat tax rate is the one and only option that is really fair because the people with higher incomes still pay higher amounts just not ridiculous amounts how would you like to earn 500k a year just to have the government stick their dirty hands into your pocket and give it to other people i dont like it one bit and ive considered tax evasion before but its just not worth it for the amount i make if my income was in the millions I definitely would evade taxes like all the billionaires out there the government is literally stealing money from hard workers and rewarding unemployed people im not against supporting the bottom bracket absolutely not but im against getting robbed of half of my income. I came from the bottom bracket at one point my family made less than 20k a year but we never went on no welfare yet here i am making 300k a year and giving half of it to the bastard government so they can reward people that dont work nearly as hard. My apologies i went on a bit of a rant in the end but im sure you would too if someone stole 1923 of your hard working hours and gave it to other people.
@@parsa6526 yeah progressive tax brackets (which most western countries use) robs the rich, governments get away with this because only a minority amount of citizens pay the highest brackets while the majority of ppl don't(not much complaining).
@@555125kevin so this video is okay but think it is incomplete. Here is another video that gives a more complete illustration of the US tax system. th-cam.com/video/kXCGbAv8YPw/w-d-xo.html
@@parsa6526 100% SUPPORT your statement. Flat tax is the way to go if you want to be fair! Why work hard be successful if your only going to earn as much as a person that make 10,000 a year? cause i earn 500,000 government is going to tax me so much that i end up with only 10,000 a year? WTF Why even try? why even give earning any effort? If the government is gong to tax the rich until they are poor there is no reason to try and be successful any more.
I believe a flat tax is the best option since it incentivizes entrepreneurship by providing the reward of taking a risk on capital, time, and energy to provide better goods/services.
I agree. The progress tax system stifles entrepreneurship and creates funding challenges for start-ups. I'd add that it penalizes hard workers incentivises laziness.
@@mycro2767 that has to do with wages, not taxes. A flat tax, everyone pays the same rate, no matter how much or little you make. So, you don’t have to be afraid of losing more if your earned income b/c you made too much and landed in a higher tax bracket.
@@christina678 20% of someone’s minimum wage income is much more impactful that 20% of a 6-figure income. That’s why we have tax free thresholds and progressive taxes. People with more ability to pay should pay more.
@@mycro2767 this is why businesses pay millions to tax experts to find loopholes, the thing about flat tax, is that there are NO LOOPHOLES. Take 10% out of you income is always If you earn 100k no matter what you do with the money, you always pay 10k. Because there are no loopholes due to a flat tax significantly reducing the tax cose to where the average joe can do it.
How about a flat tax rate with a large standard deduction? You end up what with is effectively a progressive tax rate, while gaining the simplicity advantages of the flat tax.
Progressive tax seems to be more about government getting more💰 than making things equal. Flat tax seems to be an equal and fair way to go. We all pay the same percentage which means less paper work and money spent. Should drastically reduce the IRS.
I think flat tax is better because it's proportional to income, therefore it's a fair share for everyone. The only problem is finding the perfect flat tax rate that everyone can agree on that can sufficiently fund the government but not be too high especially for the poor.
Say for example i live in California i made 40k a year that puts me in the 12% federal tax bracket the first 10k is exempt from taxes and only 30k of my income will be taxed that is 3600 dollars in federal taxes and for state taxes 6% of that 30k will be taxed thats 1800 in state taxes now i will have payed 5400 in taxes now say i made a 100k that puts me in the 24% federal tax bracket the first 10k is exempt and 90k is taxed thats 21600 and my state taxes will be 8370 coming to a total of 29970 that is 5x the amount that someone with 40k pays now say i make 500k a year my federal tax bracket is 37% the rate at which i would get taxed is 3x higher than someone with 40k but back to the calculation 37% of 500k is 185000 in federal taxes and my state tax comes to 36725 that is 221725$ in taxes nearly half of my salary that is 41x the amount someone with 40k a year pays now say everyone was taxed at a flate rate of 15% federal and 5% state a guy that makes 40k pays 8000 a guy that makes 100k pays 20000 and a guy that makes 500k pays 100k that is more than 10x the amount someone with 40k a year pays and in my opinion that is the fairest it gets. Progressive tax system is bullshit and needs to stop the government is stealing money out of the pockets of hard working individuals and gives it to the people at the bottom of the bracket so they are essentially playing some sort of fucked up robin hood that robs you blind of your hard earned money. I work in finance in a really tough and stressful environment my income is based on my performance so i have to constantly work under pressure to make more money and if the market doesn’t perform well i lose money I make roughly 300k a year and i pay a 125k in taxes i work 15 hour days 6 days a week thats 4680 hours a year and about 1923 of my hard working hours going into the pockets of other people but someone making 40k a year working 8 hours a day 5 days a week works 2080 hours a year and pays 400 hours in taxes so hours wise i pay roughly the same amount of time that he works in a year for free 1923 is not very far from 2080 i pay 4.8x more with my time than a person that pays only 400 hours in taxes so i work double his hours and pay 23x the amount he does in taxes. What kind of fucking equality are they getting at here a world where the top bracket has to lose half of their money so people in the bottom bracket can get welfare cheques and go buy crack you dont believe me? I know a drug dealer who makes 20k a week only working on Wednesday for your information this is the day welfare cheques are given out he literally calls it willy Wednesday and also pay for a shitty school system that fails everyone and people that refuse to pay their student loans and political parties that want to make post secondary education free at the expense of tax payers so the flat tax rate is the one and only option that is really fair because the people with higher incomes still pay higher amounts just not ridiculous amounts how would you like to earn 500k a year just to have the government stick their dirty hands into your pocket and give it to other people i dont like it one bit and ive considered tax evasion before but its just not worth it for the amount i make if my income was in the millions I definitely would evade taxes like all the billionaires out there the government is literally stealing money from hard workers and rewarding unemployed people im not against supporting the bottom bracket absolutely not but im against getting robbed of half of my income. I came from the bottom bracket at one point my family made less than 20k a year but we never went on no welfare yet here i am making 300k a year and giving half of it to the bastard government so they can reward people that dont work nearly as hard. My apologies i went on a bit of a rant in the end but im sure you would too if someone stole 1923 of your hard working hours and gave it to other people.
it would be cool if you did videos on people. for example: who was George Washington? and then dive into their personal life, major policies, and what their legacy is. also elections would be cool where you describe what each candidate was running on and the outcome such as the the ross perot election, 1860 election, 2020 election, etc
Yeah I’ve been considering going through many of the Presidents and doing exactly what you’re saying. Maybe I can start to rotate those in every couple months.
I know that flat tax isn’t very popular but I personally have for a long time preferred the idea of a simple universal income tax across the board. However I think that the personal allowance should be raised if a flat rate was to be implemented.
@@Emmanuel-om2zq Well because I understand that the flat-rate of income tax isn’t very popular, I am willing to compromise with a streamlined progressive income tax system. I’m from the United Kingdom and the system I’d like to be introduced when feasible is this: Income Tax free personal allowance up to £20,000, 20% above that for a base rate. Above a specific threshold of income I’d have 30% middle rate and a 40% top rate for income above another threshold. Regarding the United States, I think the number of Federal income tax bands should be reduced from seven to three which will drastically simplify the system.
@@katakisLives High income earners still pay more than lower income earners in a flat tax system. Let's say there's a 5% flat tax rate. Someone who earns 50k/yr will pay 2.5k. 1M/yr will pay 50K. And it will only increase for ultra wealthy individuals. On top of that, the ultra rich also pay property taxes in the millions. Most multi millionaires earn their income through investments and they pay capital gains tax for that, which starts at 10% and all the way up to 37%. Personal income tax doesn't really affect multi millionaires and billionaires all that much.
To my understanding, the current progressive tax has too many loopholes for the mega-wealthy to exploit. I would support something that would make up for the taxes we have missed out from that greed while at the same time cutting some slack to the working and middle-class families. A Flat sounds only ideal once the infrastructure and social programs were properly funded and functioning. Middle-class and working families would be equally negatively impacted by switching to Flat Tax with no backbone. The money saved from taxes is not enough to lift people out of poverty. Is there a tax plan that takes all of this into account?
I think we have to look at what the tax rate for the flat tax would be... because if for example the tax rate for the lowest income group is 6% then I believe that a flat tax of 7-8% would be fair... in that way the lower income group wouldn't be as burdened and the rich and business owners can have more money to expand their business. However I can see how this would be an unprecedented drop in tax revenue but as a conservative I think we should limit spending as much a possible and just keep the essential programs
I saw a video where they proposed a 17% flat tax, and people in families of 4 who earn less than 60,000 don't pay income tax. This and a land value tax would be much better than the cancer of taxes that the IRS makes hard working Americans pay right now.
Your absolutely right the government is trying to play some kind of fucked up robin hood and take money from the hard workers and give it to the uneducated. Say for example i live in California i made 40k a year that puts me in the 12% federal tax bracket the first 10k is exempt from taxes and only 30k of my income will be taxed that is 3600 dollars in federal taxes and for state taxes 6% of that 30k will be taxed thats 1800 in state taxes now i will have payed 5400 in taxes now say i made a 100k that puts me in the 24% federal tax bracket the first 10k is exempt and 90k is taxed thats 21600 and my state taxes will be 8370 coming to a total of 29970 that is 5x the amount that someone with 40k pays now say i make 500k a year my federal tax bracket is 37% the rate at which i would get taxed is 3x higher than someone with 40k but back to the calculation 37% of 500k is 185000 in federal taxes and my state tax comes to 36725 that is 221725$ in taxes nearly half of my salary that is 41x the amount someone with 40k a year pays now say everyone was taxed at a flate rate of 15% federal and 5% state a guy that makes 40k pays 8000 a guy that makes 100k pays 20000 and a guy that makes 500k pays 100k that is more than 10x the amount someone with 40k a year pays and in my opinion that is the fairest it gets. Progressive tax system is bullshit and needs to stop the government is stealing money out of the pockets of hard working individuals and gives it to the people at the bottom of the bracket so they are essentially playing some sort of fucked up robin hood that robs you blind of your hard earned money. I work in finance in a really tough and stressful environment my income is based on my performance so i have to constantly work under pressure to make more money and if the market doesn’t perform well i lose money I make roughly 300k a year and i pay a 125k in taxes i work 15 hour days 6 days a week thats 4680 hours a year and about 1923 of my hard working hours going into the pockets of other people but someone making 40k a year working 8 hours a day 5 days a week works 2080 hours a year and pays 400 hours in taxes so hours wise i pay roughly the same amount of time that he works in a year for free 1923 is not very far from 2080 i pay 4.8x more with my time than a person that pays only 400 hours in taxes so i work double his hours and pay 23x the amount he does in taxes. What kind of fucking equality are they getting at here a world where the top bracket has to lose half of their money so people in the bottom bracket can get welfare cheques and go buy crack you dont believe me? I know a drug dealer who makes 20k a week only working on Wednesday for your information this is the day welfare cheques are given out he literally calls it willy Wednesday and also pay for a shitty school system that fails everyone and people that refuse to pay their student loans and political parties that want to make post secondary education free at the expense of tax payers so the flat tax rate is the one and only option that is really fair because the people with higher incomes still pay higher amounts just not ridiculous amounts how would you like to earn 500k a year just to have the government stick their dirty hands into your pocket and give it to other people i dont like it one bit and ive considered tax evasion before but its just not worth it for the amount i make if my income was in the millions I definitely would evade taxes like all the billionaires out there the government is literally stealing money from hard workers and rewarding unemployed people im not against supporting the bottom bracket absolutely not but im against getting robbed of half of my income. I came from the bottom bracket at one point my family made less than 20k a year but we never went on no welfare yet here i am making 300k a year and giving half of it to the bastard government so they can reward people that dont work nearly as hard. My apologies i went on a bit of a rant in the end but im sure you would too if someone stole 1923 of your hard working hours and gave it to other people.
Hi! At a salary of 50k, Taylor is keeping less with the flat‐tax (42k vs 44k). At what salary does this example flip? In other words, Taylor would keep more income with the flat-tax.
Great question. As far as flat tax goes, he's always giving 15% of his money away and keeping 85% of his money (e.g. at 60k he owes 9k, at 70k he owes 10.5k etc...) If you're wondering at which flat tax percentage is it equivalent to the progressive tax numbers, that would be a flat tax of 12%. Anything lower than 12% and Taylor would benefit more from a flat tax the more he makes above 50k.
@@IllustratetoEducate Ah I see, thank you. It's a double edged sword. Ideally, would a flat tax allow for any deductions ? That may make it more fair for certain tax payers.
I personally want a flat tax of 17 percent on all income with no deductions. I would eliminate the corporate tax and make it so a business owner would pay themselve through dividends.
A flat tax of 10% across the board period. No loopholes, no brackets, no deductions period. If you earn money Man or woman, small business, big business, corporation you pay 10% FLAT.
@@dtbroad5862 Doesn't history teach you that when everyone has the same or close to the same tax rate the rich BLOW UP WITH MONEY and it does not trickle down to the people of that country. We really need to start seeing this as ONE COUNTRY not ONE PERSON. We are to much of a selfish country to advance and be so much better. AMERICA can be the beacon of the whole world if we can just stop being greedy and start helping all of us. GIVE FREE EDUCATION TO OUR YOUNG. Make our country in general SMARTER.
@@truereligionfiend738 they pay less in taxes which means they can put more money into their business. Flat Tax example of 10% Worker 1: $30,000 × 10% = $3,000 in taxes Worker 2: $10,000,000 × 10% = $1,000,000 in taxes I just think we're paying too much in taxes bruh and most of the money is going to bullshit. A person making more money will still pay more taxes and not the ridiculous 20%-22%.
@AspectKraken wrong actually while your partly correct a flat tax system wouldnt reduce wages it would actually increase them because the government would charge less in taxes so the employees can actually earn more of what they worked for already
At that rate the lower and middle class are taking alot less than they were before. Remember they never have loopholes or deductions. Even if you take away loopholes and deductions for the rich in the end they still pay way less than the average worker. What I do not get before Reagan did what he did with the tax code the middle class was at its strongest. They were only one man working in the household. Mom would be able to stay home and take care of the children. He was able to afford and home and car and be able to go on vacations. After Reagan all that started going away. If Republicans who want to push flat tax and want to make America great again. Make the RICH TAX RATE back to 70% and take the burden away from the middle class.
@@arod077 at 17% everybody will pay their fair share, no one should pay more because they make more or less. If you make the rich pay 70% they would most likely go away and go some place else that give tax incentives, and the poor and middle class don't have to worry about paying taxes because they won't have a job. Also you are not taking into consideration property taxes, sales taxes, inheritance taxes, etc. The rich may not pay any corporate taxes but they sure pay a lot of other taxes that neither the poor and the middle class pay.
@@maximilianogarciachirinos3663 The whole idea of rich people leaving is bullshit. The poor and Middle class pay for property taxes and sales tax what the hell are you talking about. We really need to stop kissing the asses of rich people and make them really pay their share cause honestly, they are getting rich cause of us buying their product and helping them create it. The big problem now is there are actual monopolies now. That is not a good thing for consumer. Our government is failing the middle class.
@@arod077 you need to give incentives to the rich so they, the poor and the middle class innovate, that is what is called upward mobility. So if a poor/middle class person create a product that you want to spend you hard earn money on, he will become rich, the same could happen when you create a product or service that other people want to buy, you eventually or most likely will become rich, it depends of how the market react with a product or service. The issue with monopolies is that the government and corporations collude and create barriers of entry so that the small and midsize business don't grow or expand as they should under normal circunstancies. The best thing for consumers in general is competition that many companies compete in the market and no a monopoly, duopoly, oligopoly, etc. In conclusion, free market economy with a flat tax.
Although it seems that flat tax would be less beneficial to people in the lower tax bracket, it is those same people that are the ones that benefit from government programs and let's face it it is not going to incentivise the wealthy. And even though we may not like companies like Amazon they do create jobs we have to face the facts
Hello! Thanks for your video. I'm a citizen of Sweden, which has free (i.e. tax-financed) education to college, and healthcare. I am a wealthy citizen, earning more than $100k yearly, and I am trying to learn more. What I primarily want to know is; where (statistically) does my money go? Do I help my citizens with education and healthcare? In Sweden, the employer will pay basically the cost of the employee (so an employee earning $30,000 yearly would cost the employer ~$50,000 yearly) in fees to the government, which, in turn goes basically fully to the employee's pension. I realized a while back that while my American friends paid basically the same tax from the money they saw (~30%) as employees, it seems they get nothing for their money. I get, for example, proper roads, in addition to the abovementionened perks. Could you elaborate on this system? Thank you for your time.
@@noname-bt9ky Yes you get more in your hand, but we get less buck of our money compared to other countries. I mean we are the only high-end country that does give their citizens free healthcare. We still live in a damn a country that rich people make money out of SICK PEOPLE.
You did not do flat tax correct. All people don't pay tax on the first amount of money. So in most flat tax don't pay tax on the first $20,000, so in your example, under flat tax he would have paid ~$4,000 and not $6,000. So people who make less than $20,000 in my example pay $0. So the tax is progressive in a way.
Flat tax rate but but maybe have 2 tax rates. 1 for top half and 1 for lower half of earners. One thing I don't like about flat tax is it gets rid of loop holes like charitable deductions which is good but then righteous charities take a big hit
It is not the tax rates that make the system unfair, it is the loopholes. Imagine the owner of a high income company, he pays himself the same salary as an entry level employee to reduce his taxable income but lives a life of luxury because he has at his disposal all of the facilities the company owns, such as a company car, telephone, office at home, hotels for business trips, golf club and restaurant bills paid by the business promotion expenses, most importantly he has access to the company accountant to advise him of all the other loopholes he can benefit from.
Analyses of who actually pays the bulk of taxes now puts most it on the wealthy and often the poorer (or less wealthy) pay almost none. If a Flat Tax allows larger personal deductible, the Flat Tax system could begin only above a level that allows the individual to live, tax free to that point. Example: you are tax free up to 30K, but start paying 15% anything earned above that. That would allow every tax payer (and designated dependents) enough to pay a certain amount into an HSA for health, IRA for retirement, Educational Savings Account, and have a basic personal income tax free, and minimizing government costs.
Flat tax. As long as we have no loopholes. The rich would pay more than the do now. Plus it doesn’t discourage you to work more. I had a job once were I made less at 52 hours than just working my normal 40. So I wouldn’t go over 40. If I would try to work more to save money I’d end up with less or the same as working 40.
this makes no sense. if you were hourly, your overtime hours are taxed heavier than the initial 40, sure, but thats still more money. or your wages were being garnished. i think you're being disingenuous, didn't record your time correctly, or are dumb. the government isnt going to tax you over 100% of of your wages for working overtime.
I think that caring about the progressivity of taxation systems is a pretty bad way to go about things - even if you have an extremely regressive tax, like a consumption tax, how you redistribute the money through welfare programs and the like can heavily outweigh the burden on the poor. Caring only about the progressivity, regressivity, or fairness of taxes prevents taxes from being designed to help influence society, for example a land value tax or vehicle miles travelled tax.
A semi progressive tax rate is more efficient (assuming loopholes are eliminated) Economists argue that a 5% Surtax on incomes $5 Million and over could generate $5 Trillion dollars in government revenue in a decade. The government could then allocate a portion of the revenue to get the debt down and see an economic surplus in coming years that would benefit Americans.
Has an economist run the numbers on a flat 10% income tax where you live and flat 10% sales tax where you buy from? 1% to the federal government, 2% to the state, 3% to the county and 4% to the city or town.
The progressive tax method requires more maintenance to assure it's calculated properly. This causes confusion with people who are mathematically challenged. The waters get muddied even further when you start talking about dedections, credits and capital gains. Federally, I'll gladly pay 10% on income and another 5% on anything else I purchase. Outside of that, leave me alone and maintain infrastructure within those limits. A commone sense tax approach would put a lot of politicians in a position to be a normal citizen and not become rich off the system though. It seems we may be back where we started 🤔
IM SMART AND POOR PEOPLE ARE DUMB SO THEY SHOULD BE ROBBED OF BASIC HUMAN LIVING STANDARDS SO THAT I CAN TYPE CONDESCENDING COMMENTS ON TH-cam IN MY FORD F-350'S MACBOOK
@@CommanderBruh neither I, but flat tax where who makes 10k will pay like the one who makes 5B is not fair so progressive tax with so low rates is good
@@Nanofuture87 People want housing ut still cant pay for it. How would you run a somewhat unbiased military? Public education shouldn't have to be payed by the people attending. It just seems that would be a step back rather than progressing forward. Like look at healthcare, everyone needs it to basically live, right? Why would you need to pay for that? You need food to live, how would poor people pay for that? It just seems like class inequality when all you say is, "if you want it, buy it" even though it's more nuanced than that.
@@mush1e979 "How would you run a somewhat unbiased military?" Assuming we should have a centralized governmental military at all, it could be paid for through donations, lotteries, etc. "Public education shouldn't have to be payed by the people attending" Public education shouldn't exist. It should all be private. "It just seems that would be a step back rather than progressing forward." Stopping theft and inefficient government waste and allowing individuals to decide what services they want themselves seems like progress forward to me. "Why would you need to pay for that?" Because it's a service that utilizes scarce resources and labor. It always needs to be paid for, it's just a matter of who is paying. "You need food to live, how would poor people pay for that?" Numerous charities exist to help those who cannot afford basic necessities, and people would have more to donate if they were not being taxed as well as more incentive to do so.
how much would we cut from government if filing was automatic and there was no such thing as 'tax breaks'. It makes more sense today in a 'cashless" society where almost everythign is tracked. Sales tax could also be increased slightly to balance out. The focus should always be on growing the economy product/etc. rather than tax avoidance...we already give too many outs rather than to say no out regardless of who you are "flat rate" no exception. The IRS should only be coming after you for undeclared income (not paying tax) which would likely result from nefarious means and justify the personnel employed by the government.
There is currently no personal income tax in the United Arab Emirates. There are no individual tax registration or reporting obligations. Business activity in the United Arab Emirates will be subject to UAE corporate tax at 9% where the total turnover derived from such business or business activity exceeds 1 million UAE dirhams (AED). The cost of business registration and licenses is significantly higher when compared to Western countries (x2.5).
@@imperators_8700 That doesn’t make it fairer. The flat tax would literally destroy the poor. It is the epitome of “The rich get richer and the poor get poorer”.
@@Shockkings0714 well actually no, a flat tax would help the rich so the rich would invest more, and as the rich invest more it would create more job and wealth opportunities for the poor benefit Also it wouldn’t “destroy” the poor if that flat tax was at a low rate
A low rate flat tax with no exemptions would be the simplest option. It may be difficult finding consensus regarding that low rate or people transforming that low rate flat tax with no exemptions to a slightly simpler version of what we have in place now. The IRS and tax accountants would have to find a real job lol if tax code was simple. A world without tax lawyers and slimy accountants would be a better place imho. It would benefit the middle class by having the wealthy not spend millions to get out of taxes. In the current system, low income people get handouts and the rich hire attorneys and accountants to get out of paying taxes.
There is no such thing as a "low" flat tax. Everyone in the united states that isn't a multimillionaire making millions per year would see their taxes increase. First - understand how a progressive tax system works. If you are in a 35% tax bracket - that doesn't mean you just take your taxable income and calculate your tax to be 35% of that. It is PROGRESSIVE - hence the name. There are tax brackets. They range from 10% up to 37%. You pay 10% tax on any amount up to a certain amount (it changes slightly every year). Then the amount of money you make ABOVE that first bracket up to a certain point gets taxed at 12%. Then the money you make above those first two brackets up to a certain point gets taxed higher. Your "tax bracket" in a progressive system is not what ALL your taxable income is taxed at. It's just the highest bracket you reach. A flat tax does away with this concept. There is one rate - - and everyone is taxed at that rate on 100% of their taxable income. If you take the total amount of revenue the IRS received from individual tax returns and divided it by the number of tax returns filed, you will get the percentage needed to collect the same amount of revenue, but have everyone pay the same rate - - - on ALL of their taxable income. It turns out, that this would be about 27%. That's what would be needed to implement a flat tax. So, it is categorically impossible to collect the revenue necessary to operate with a "low rate flat tax". 27% is simply what it would have to be. What this would do is give a tax cut to only the richest people in the country. Those making several million dollars a year. They get a tax cut. Everyone else - it would be a tax increase, and it would NOT be progressive. Which means the people who will see the largest impact from a flat tax are the poorest people. The less money you make, the higher your percentage increase in taxes would become. Someone used to paying only 10% in taxes would suddenly be having to pay 27% in taxes. Someone who is used to paying 10% in taxes on their first 'x' amount of income, and then 12% on the rest would then have to pay 27% on ALL of it. Someone who is used to paying 10% in taxes up to 'x' amount, then 12% on anything above that 'x' amount up to 'y' amount, and then 22% on anything over 'y' amount....and so on and so on....would instead have to pay 27%........on ALL of it. And why? Why would the guy making $50,000 see his taxes more than double? To pay for the tax cut they'd be giving only to the people making MILLIONS a year. That's how the flat tax would ACTUALLY work. A "low" flat tax that compensates the government similarly DOES NOT EXIST. Unless you make millions of dollars a year. It's only a low rate from their perspective. For everyone else, it's a tax hike. And the less you make, the bigger the hike. That sound like a fair plan to you?
Shouldn’t matter how wealthy or poor u are, there should be a flat tax rate for all. U worked hard for the money u make. Wouldn’t make sense that u pay more taxes if u make more
Well the people who make more DO pay more if there were a flat tax. If there were a flat tax, you'd actually be giving the rich a tax CUT and making everyone else pay for it by increasing their taxes. The average American makes about $50,000 a year. For simplicity's sake, I'm going to ignore all deductions and just assume this is the taxable income. Right now, someone with taxable income of $50,000 pays $6,307 in tax (for 2023 tax year). Someone with $10,000,000 in taxable income will have paid $3,660,331 in tax. So the marginal rate for someone with $50,000 of taxable income is 12.6%. The marginal rate for the person with $10,000,000 of taxable income is 36.6%. In 2023, the government collected about $2.2 trillion dollars from individual taxes, and there were about 163,000,000 individual tax returns filed. So, on average, people paid about $13,500 in taxes each. Obviously, that's not REALLY the case because the people who made more paid more. This is just the average - - so if we want to calculate how the government could still collect the same amount of tax revenue from those 163,000,000 with a flat tax rate, we simply divide the number of people by the amount of taxes collected. When you do this, what you come up with is that in order for the government to collect $2.2 trillion in taxes with a flat tax, everyone's rate would have to be 27%. Remember, the guy who made $50,000 only paid a marginal rate of 12.6% under the progressive tax system. Under the flat tax system, he will have to pay 27%. So instead of him being taxed $6,307 on his $50,000 of taxable income, his tax would be $13,500 - an increase of 114%. Remember the guy who made $10,000,000 paid a marginal rate of 36.6% before. Under the flat tax plan, he only pays 27%, so his tax would be $2,700,000. Before, his marginal tax rate was 36.6%, but it's only 27% under the flat tax plan. He gets a tax CUT. He paid about $3.7 million in taxes under the progressive plan, but only $2.7 million under a flat tax. A tax SAVINGS of 27%.. So the uber rich guy gets a 27% tax cut - - - - paid for by the people who make $50,000 a year who have their taxes raised by 114% to pay for the tax cut gifted to the guy making 10 million dollars a year. That sound like a good plan? Because that's what the flat tax does. It is a tax cut for ONLY the people in the highest tax bracket. Everyone else will have higher taxes to pay for the tax cuts for the richest people in the United States. That's ACTUALLY how a flat tax would work.
what this video fails to mention is that the ultra rich will no longer have tax loop holes therefore even more money will given to the tax man, small business owners will be able to keep more money, hire more people, pay them better because not as much money is going to taxes. we would see an increase in consumerism because poorer will have more money to spend. a further investigation into the poverty line is required where those living on or below the poverty line should not be taxed thus giving them an opportunity to eventually escape the cycle of poverty. good video but its one sided made to look as if it's not biased
Obviously high income earners make more for a reason. Many sacrificed and took risks to make wealth. Poor people have unskilled manual labor and don't want school or to risk what they have by investing.. So why should the high wage earners have to pay for the lack of vision of the poor??
In progressive tax the ritch get more money taken from them and bc there are more poor ppl there votes count more. Ok first off it's only a small percentage of anything above a certain amount of money and second yes there are more poor so more votes from them but not all the poor think the same and the system should be looking to help the most ppl not just the highest, mabey the ritch shouldn't get out of paying there taxes so often hmm?? Also thx for the non bias opinion Illustrate to Educate!
I would love 10% on the dollar so if i made 1 mil i would only have to give away 100k that is as fair as it gets but with the current tax rate they expect nearly 450k in taxes which is a mind fucking amount more than the bottom bracket pays
Flat tax. Everyone should have skin in the game not to mention simplified less time consuming tax preparation. KISS Keep It Simple S...... Ocham's razor
Flat tax would be fair if “the more money you have, the easier it is to make money” wasn’t true. However, since that is far from the truth, a progressive tax makes more sense.
I personally don't think it's fair to charge people with more money higher taxes which is why I support flat tax because just because someone has money doesn't mean they are living the life they could actually be poor because they would be paying high taxes
@@CommanderBruh because of tax brackets, no one would end up with less money than someone with a lower salary than them except in circumstances with tax breaks for things like charity donations
@@packblixty2147 that's not the only reason why I don't support it. Just one reason. Besides you are not changing my mind I will never agree or side with democrats them racist people.
A Flat Tax Rate combined with Universal Basic Income and Personal Allowance is probably the best way to unite left and right wing people on economic policy. You could replace the welfare in your country with UBI, have a Flat Tax Rate higher than is currently paid through Progressive Tax and Personal Allowance (the set amount you can earn before you start paying any tax) makes it so that employment *ALWAYS* pay more than just trying to live off UBI. The left would love it because the rich would pay more tax, and the right would love the sound of getting rid of unemployment benefits and having a system that is universally applied without disproportionately punishing you for every pay raise you get. It's literally the same for everyone. Jeff Bezos would be just as entitled to the Personal Allowance and Universal Basic Income, but it would be a drop in the ocean for him compared to how much more he would pay in tax. That, compared to someone earning their poverty in low-paying jobs, getting a Personal Allowance before they get taxed, and UBI topping up their income. Simplifies the welfare state massively too. All tax rates and UBI can be tweaked to make it however Liberal or Conservative you wanted too 🤷♂️
@@billedifier8584 well, yeah. The idea is that if you replace welfare like Jobseekers Allowance or Child Tax Benefits and give everybody the same amount, yes, it would cost more to pay everyone, but also cut down on a massive amount of paperwork because you have a smaller government. The amount spent on welfare payments + the amount saved on administrative costs + part of the extra taxes taken from a flat tax rate means everybody except the super rich would be better off, depending on what you set that UBI amount at. You could say UBI is £77 a week. With current expenditure, if you knocked UBI on the head once you receive a State Pension, and you didn't also receive other welfare payments like Disability Living Allowance or Carer Allowance etc... the average person would have to pay £53 in extra taxes to receive £77. Bare in mind, the reason that's possible is because many rich people would be paying far more than £53 each, and some people would be paying nothing because they just live off the £77, as is currently the case. Obviously there's plenty of tinkering to do with the figures. I'm not an economist, I'm just floating an idea that could be tailored in such a way as to be completely the same for everyone, with minimal administrative costs, and wealth distributed more evenly.
The United States SHOULD be on a Flat Tax system of taxation. Every business and individual should pay the same percentage of income tax. This would eliminate the overly complicated and unecessary tax system we have in place in the US currently. First off, if all businesses and wage earners were proportionally taxed, it would be more fair to all. It would be a win-win situation. This would eliminate tax loop-holes. No more tax breaks of ANY kind for ANYBODY, would be a more fair and a refreshing change.The IRS would become strictly a Tax Collection Agency, thus able to operate with probably about 20% of the personnel it employs today. There'd be no 'April 15', as taxes would be deducted all-along-the-way, no more high-priced Tax Accountants or Tax Lawyers would be needed. With Flat Taxation, there would be a drastic reduction in paperwork and no yearly changes in the tax laws.
Under the progressive tax, that part about the small group of the wealthy not being able to influence government made me LOL!!!
Same I was like did he mistakenly say wealthy instead of lower class
we need to abolish private property (not personal property), in order to not have any taxation, instead u tax the corporations, which The State owns, meaning that instead of workers being taxed they are now taxing the profits of corporations in which The Government then owns
@@JjAnterosare you in China?
Because the American Government does not "Owen" businesses.
And if you say, the Government needs $3 Trillion a year of tax income and you just stop taxing everyone and put it all on the businesses the are either Privately OWNED or even Corporate Owned (which means there are Thousands of owners thru Stocks) , the government will have a major short fall of income to keep it running.
So now, you want to make up that missing income of say $1 Trillion tax dollars thru businesses. Do yiu actually believe that businesses are going to keep their prices the same and just pay more in taxes? HELL NO! Those businesses will raise the cost of their products they are selling to us costing us more money. But it doesn't stop there. As the price goes of the product goes up, you will pay more at time of purchase in Sales Tax. In the end, you could easily pay double the amount in the EXTRA living costs than the taxes you previously paid.
I'm for a Flat 8% Tax with a National Luxury Tax of 8% on the purchase of anything over the cost of $5000 with the exception of Real Estate and certain vehicles.
A Toyota Avalon would be considered a Luxury were as a Lamborghini and Ferrari would be.
A boat over $50,000 would be a Luxury cause Millionaires don't buy a $50,000 boat, they buy a multimillion dollar yacht!
@@JjAnteroswhy?
While I personally support progressive taxing, it is quite nice to look at flat taxing from a different perspective and look at the positive sides of both systems!! :) Thanks for this amazingly made and super interesting video once more!
Thank you for watching and commenting on the video! I really appreciate it!
The only people that support progressive taxing are people that dont earn a good income if you earned a good income you would be pissed off by the amount the government steals from you Say for example i live in California i made 40k a year that puts me in the 12% federal tax bracket the first 10k is exempt from taxes and only 30k of my income will be taxed that is 3600 dollars in federal taxes and for state taxes 6% of that 30k will be taxed thats 1800 in state taxes now i will have payed 5400 in taxes now say i made a 100k that puts me in the 24% federal tax bracket the first 10k is exempt and 90k is taxed thats 21600 and my state taxes will be 8370 coming to a total of 29970 that is 5x the amount that someone with 40k pays now say i make 500k a year my federal tax bracket is 37% the rate at which i would get taxed is 3x higher than someone with 40k but back to the calculation 37% of 500k is 185000 in federal taxes and my state tax comes to 36725 that is 221725$ in taxes nearly half of my salary that is 41x the amount someone with 40k a year pays now say everyone was taxed at a flate rate of 15% federal and 5% state a guy that makes 40k pays 8000 a guy that makes 100k pays 20000 and a guy that makes 500k pays 100k that is more than 10x the amount someone with 40k a year pays and in my opinion that is the fairest it gets. Progressive tax system is bullshit and needs to stop the government is stealing money out of the pockets of hard working individuals and gives it to the people at the bottom of the bracket so they are essentially playing some sort of fucked up robin hood that robs you blind of your hard earned money. I work in finance in a really tough and stressful environment my income is based on my performance so i have to constantly work under pressure to make more money and if the market doesn’t perform well i lose money I make roughly 300k a year and i pay a 125k in taxes i work 15 hour days 6 days a week thats 4680 hours a year and about 1923 of my hard working hours going into the pockets of other people but someone making 40k a year working 8 hours a day 5 days a week works 2080 hours a year and pays 400 hours in taxes so hours wise i pay roughly the same amount of time that he works in a year for free 1923 is not very far from 2080 i pay 4.8x more with my time than a person that pays only 400 hours in taxes so i work double his hours and pay 23x the amount he does in taxes. What kind of fucking equality are they getting at here a world where the top bracket has to lose half of their money so people in the bottom bracket can get welfare cheques and go buy crack you dont believe me? I know a drug dealer who makes 20k a week only working on Wednesday for your information this is the day welfare cheques are given out he literally calls it willy Wednesday and also pay for a shitty school system that fails everyone and people that refuse to pay their student loans and political parties that want to make post secondary education free at the expense of tax payers so the flat tax rate is the one and only option that is really fair because the people with higher incomes still pay higher amounts just not ridiculous amounts how would you like to earn 500k a year just to have the government stick their dirty hands into your pocket and give it to other people i dont like it one bit and ive considered tax evasion before but its just not worth it for the amount i make if my income was in the millions I definitely would evade taxes like all the billionaires out there the government is literally stealing money from hard workers and rewarding unemployed people im not against supporting the bottom bracket absolutely not but im against getting robbed of half of my income. I came from the bottom bracket at one point my family made less than 20k a year but we never went on no welfare yet here i am making 300k a year and giving half of it to the bastard government so they can reward people that dont work nearly as hard. My apologies i went on a bit of a rant in the end but im sure you would too if someone stole 1923 of your hard working hours and gave it to other people.
@@parsa6526 yeah progressive tax brackets (which most western countries use) robs the rich, governments get away with this because only a minority amount of citizens pay the highest brackets while the majority of ppl don't(not much complaining).
@@555125kevin so this video is okay but think it is incomplete. Here is another video that gives a more complete illustration of the US tax system. th-cam.com/video/kXCGbAv8YPw/w-d-xo.html
@@parsa6526 100% SUPPORT your statement. Flat tax is the way to go if you want to be fair! Why work hard be successful if your only going to earn as much as a person that make 10,000 a year? cause i earn 500,000 government is going to tax me so much that i end up with only 10,000 a year? WTF Why even try? why even give earning any effort? If the government is gong to tax the rich until they are poor there is no reason to try and be successful any more.
I believe a flat tax is the best option since it incentivizes entrepreneurship by providing the reward of taking a risk on capital, time, and energy to provide better goods/services.
Alright what to you think of poor people not being able to feed themselves because of your dumb ideology that only makes sense for 15 year olds.
I agree. The progress tax system stifles entrepreneurship and creates funding challenges for start-ups. I'd add that it penalizes hard workers incentivises laziness.
@@mycro2767 that has to do with wages, not taxes. A flat tax, everyone pays the same rate, no matter how much or little you make. So, you don’t have to be afraid of losing more if your earned income b/c you made too much and landed in a higher tax bracket.
@@christina678 20% of someone’s minimum wage income is much more impactful that 20% of a 6-figure income.
That’s why we have tax free thresholds and progressive taxes. People with more ability to pay should pay more.
@@mycro2767 this is why businesses pay millions to tax experts to find loopholes, the thing about flat tax, is that there are NO LOOPHOLES. Take 10% out of you income is always
If you earn 100k no matter what you do with the money, you always pay 10k. Because there are no loopholes due to a flat tax significantly reducing the tax cose to where the average joe can do it.
Flat tax > Progressive tax
Maybe I'll justify later but that's my opinion.
How about a flat tax rate with a large standard deduction? You end up what with is effectively a progressive tax rate, while gaining the simplicity advantages of the flat tax.
ok than it’s not a flat tax anymore
Progressive tax seems to be more about government getting more💰 than making things equal. Flat tax seems to be an equal and fair way to go. We all pay the same percentage which means less paper work and money spent. Should drastically reduce the IRS.
Both have good examples
Singapore 🇸🇬 for flat.
Norway 🇳🇴 for progressive.
I think flat tax is better because it's proportional to income, therefore it's a fair share for everyone. The only problem is finding the perfect flat tax rate that everyone can agree on that can sufficiently fund the government but not be too high especially for the poor.
Say for example i live in California i made 40k a year that puts me in the 12% federal tax bracket the first 10k is exempt from taxes and only 30k of my income will be taxed that is 3600 dollars in federal taxes and for state taxes 6% of that 30k will be taxed thats 1800 in state taxes now i will have payed 5400 in taxes now say i made a 100k that puts me in the 24% federal tax bracket the first 10k is exempt and 90k is taxed thats 21600 and my state taxes will be 8370 coming to a total of 29970 that is 5x the amount that someone with 40k pays now say i make 500k a year my federal tax bracket is 37% the rate at which i would get taxed is 3x higher than someone with 40k but back to the calculation 37% of 500k is 185000 in federal taxes and my state tax comes to 36725 that is 221725$ in taxes nearly half of my salary that is 41x the amount someone with 40k a year pays now say everyone was taxed at a flate rate of 15% federal and 5% state a guy that makes 40k pays 8000 a guy that makes 100k pays 20000 and a guy that makes 500k pays 100k that is more than 10x the amount someone with 40k a year pays and in my opinion that is the fairest it gets. Progressive tax system is bullshit and needs to stop the government is stealing money out of the pockets of hard working individuals and gives it to the people at the bottom of the bracket so they are essentially playing some sort of fucked up robin hood that robs you blind of your hard earned money. I work in finance in a really tough and stressful environment my income is based on my performance so i have to constantly work under pressure to make more money and if the market doesn’t perform well i lose money I make roughly 300k a year and i pay a 125k in taxes i work 15 hour days 6 days a week thats 4680 hours a year and about 1923 of my hard working hours going into the pockets of other people but someone making 40k a year working 8 hours a day 5 days a week works 2080 hours a year and pays 400 hours in taxes so hours wise i pay roughly the same amount of time that he works in a year for free 1923 is not very far from 2080 i pay 4.8x more with my time than a person that pays only 400 hours in taxes so i work double his hours and pay 23x the amount he does in taxes. What kind of fucking equality are they getting at here a world where the top bracket has to lose half of their money so people in the bottom bracket can get welfare cheques and go buy crack you dont believe me? I know a drug dealer who makes 20k a week only working on Wednesday for your information this is the day welfare cheques are given out he literally calls it willy Wednesday and also pay for a shitty school system that fails everyone and people that refuse to pay their student loans and political parties that want to make post secondary education free at the expense of tax payers so the flat tax rate is the one and only option that is really fair because the people with higher incomes still pay higher amounts just not ridiculous amounts how would you like to earn 500k a year just to have the government stick their dirty hands into your pocket and give it to other people i dont like it one bit and ive considered tax evasion before but its just not worth it for the amount i make if my income was in the millions I definitely would evade taxes like all the billionaires out there the government is literally stealing money from hard workers and rewarding unemployed people im not against supporting the bottom bracket absolutely not but im against getting robbed of half of my income. I came from the bottom bracket at one point my family made less than 20k a year but we never went on no welfare yet here i am making 300k a year and giving half of it to the bastard government so they can reward people that dont work nearly as hard. My apologies i went on a bit of a rant in the end but im sure you would too if someone stole 1923 of your hard working hours and gave it to other people.
it would be cool if you did videos on people. for example: who was George Washington? and then dive into their personal life, major policies, and what their legacy is. also elections would be cool where you describe what each candidate was running on and the outcome such as the the ross perot election, 1860 election, 2020 election, etc
Yeah I’ve been considering going through many of the Presidents and doing exactly what you’re saying. Maybe I can start to rotate those in every couple months.
I know that flat tax isn’t very popular but I personally have for a long time preferred the idea of a simple universal income tax across the board. However I think that the personal allowance should be raised if a flat rate was to be implemented.
How do you feel now?
@@Emmanuel-om2zq Well because I understand that the flat-rate of income tax isn’t very popular, I am willing to compromise with a streamlined progressive income tax system. I’m from the United Kingdom and the system I’d like to be introduced when feasible is this: Income Tax free personal allowance up to £20,000, 20% above that for a base rate. Above a specific threshold of income I’d have 30% middle rate and a 40% top rate for income above another threshold. Regarding the United States, I think the number of Federal income tax bands should be reduced from seven to three which will drastically simplify the system.
I personally prefer a flat tax system. One of the things I like about Pennsylvania
How is it fair that a multi millionaire pays the same amount as a poor person?
@@katakisLives High income earners still pay more than lower income earners in a flat tax system. Let's say there's a 5% flat tax rate. Someone who earns 50k/yr will pay 2.5k. 1M/yr will pay 50K. And it will only increase for ultra wealthy individuals. On top of that, the ultra rich also pay property taxes in the millions. Most multi millionaires earn their income through investments and they pay capital gains tax for that, which starts at 10% and all the way up to 37%. Personal income tax doesn't really affect multi millionaires and billionaires all that much.
@@natep6729 Sounds fair enough to me.
We need to either have a flat tax OR abolish all current taxes with a consumption/sales tax
To my understanding, the current progressive tax has too many loopholes for the mega-wealthy to exploit. I would support something that would make up for the taxes we have missed out from that greed while at the same time cutting some slack to the working and middle-class families. A Flat sounds only ideal once the infrastructure and social programs were properly funded and functioning. Middle-class and working families would be equally negatively impacted by switching to Flat Tax with no backbone. The money saved from taxes is not enough to lift people out of poverty. Is there a tax plan that takes all of this into account?
Everyday people also use those loop holes.
I think we have to look at what the tax rate for the flat tax would be... because if for example the tax rate for the lowest income group is 6% then I believe that a flat tax of 7-8% would be fair... in that way the lower income group wouldn't be as burdened and the rich and business owners can have more money to expand their business. However I can see how this would be an unprecedented drop in tax revenue but as a conservative I think we should limit spending as much a possible and just keep the essential programs
I saw a video where they proposed a 17% flat tax, and people in families of 4 who earn less than 60,000 don't pay income tax. This and a land value tax would be much better than the cancer of taxes that the IRS makes hard working Americans pay right now.
Dude just tax everyone at 10% state and federal and call it a day
@@redfather5342 fr
Imagine punishing people for investing, working hard, or being smart with their money that’s what a progressive tax is
Exactly.
The only argument against flat tax is the typical ‘wHaT aBoUt tHe pOOr!?!?’
Your absolutely right the government is trying to play some kind of fucked up robin hood and take money from the hard workers and give it to the uneducated. Say for example i live in California i made 40k a year that puts me in the 12% federal tax bracket the first 10k is exempt from taxes and only 30k of my income will be taxed that is 3600 dollars in federal taxes and for state taxes 6% of that 30k will be taxed thats 1800 in state taxes now i will have payed 5400 in taxes now say i made a 100k that puts me in the 24% federal tax bracket the first 10k is exempt and 90k is taxed thats 21600 and my state taxes will be 8370 coming to a total of 29970 that is 5x the amount that someone with 40k pays now say i make 500k a year my federal tax bracket is 37% the rate at which i would get taxed is 3x higher than someone with 40k but back to the calculation 37% of 500k is 185000 in federal taxes and my state tax comes to 36725 that is 221725$ in taxes nearly half of my salary that is 41x the amount someone with 40k a year pays now say everyone was taxed at a flate rate of 15% federal and 5% state a guy that makes 40k pays 8000 a guy that makes 100k pays 20000 and a guy that makes 500k pays 100k that is more than 10x the amount someone with 40k a year pays and in my opinion that is the fairest it gets. Progressive tax system is bullshit and needs to stop the government is stealing money out of the pockets of hard working individuals and gives it to the people at the bottom of the bracket so they are essentially playing some sort of fucked up robin hood that robs you blind of your hard earned money. I work in finance in a really tough and stressful environment my income is based on my performance so i have to constantly work under pressure to make more money and if the market doesn’t perform well i lose money I make roughly 300k a year and i pay a 125k in taxes i work 15 hour days 6 days a week thats 4680 hours a year and about 1923 of my hard working hours going into the pockets of other people but someone making 40k a year working 8 hours a day 5 days a week works 2080 hours a year and pays 400 hours in taxes so hours wise i pay roughly the same amount of time that he works in a year for free 1923 is not very far from 2080 i pay 4.8x more with my time than a person that pays only 400 hours in taxes so i work double his hours and pay 23x the amount he does in taxes. What kind of fucking equality are they getting at here a world where the top bracket has to lose half of their money so people in the bottom bracket can get welfare cheques and go buy crack you dont believe me? I know a drug dealer who makes 20k a week only working on Wednesday for your information this is the day welfare cheques are given out he literally calls it willy Wednesday and also pay for a shitty school system that fails everyone and people that refuse to pay their student loans and political parties that want to make post secondary education free at the expense of tax payers so the flat tax rate is the one and only option that is really fair because the people with higher incomes still pay higher amounts just not ridiculous amounts how would you like to earn 500k a year just to have the government stick their dirty hands into your pocket and give it to other people i dont like it one bit and ive considered tax evasion before but its just not worth it for the amount i make if my income was in the millions I definitely would evade taxes like all the billionaires out there the government is literally stealing money from hard workers and rewarding unemployed people im not against supporting the bottom bracket absolutely not but im against getting robbed of half of my income. I came from the bottom bracket at one point my family made less than 20k a year but we never went on no welfare yet here i am making 300k a year and giving half of it to the bastard government so they can reward people that dont work nearly as hard. My apologies i went on a bit of a rant in the end but im sure you would too if someone stole 1923 of your hard working hours and gave it to other people.
@@parsa6526 I really enjoyed reading your rant on tax rates differences. Thank you sir.
@@parsa6526 who in their right mind would stay in California especially with Gavin newsom LOL
imagine rewarding people who inherit daddy's money or career.
Most flat tax systems exclude people from paying who are under a certain income level.
Good point! Thanks for that clarification.
Which is stupid.
Flat tax is fair. pay whatever everyone else pays that is the definition of paying your fair share.
Hi! At a salary of 50k, Taylor is keeping less with the flat‐tax (42k vs 44k). At what salary does this example flip? In other words, Taylor would keep more income with the flat-tax.
Great question. As far as flat tax goes, he's always giving 15% of his money away and keeping 85% of his money (e.g. at 60k he owes 9k, at 70k he owes 10.5k etc...) If you're wondering at which flat tax percentage is it equivalent to the progressive tax numbers, that would be a flat tax of 12%. Anything lower than 12% and Taylor would benefit more from a flat tax the more he makes above 50k.
@@IllustratetoEducate Ah I see, thank you. It's a double edged sword. Ideally, would a flat tax allow for any deductions ? That may make it more fair for certain tax payers.
@@mlee9049 No deduction, no loopholes, that's what invites corruption.
Depends how much money you have to support one side or another.
The exemple for flat taxing is so unreal : in Romania we pay currently, oct 2024, 47% of our gross income. Yes. Almost a half.
I personally want a flat tax of 17 percent on all income with no deductions. I would eliminate the corporate tax and make it so a business owner would pay themselve through dividends.
Thats too high 10% nothing more
A flat tax of 10% across the board period. No loopholes, no brackets, no deductions period. If you earn money Man or woman, small business, big business, corporation you pay 10% FLAT.
@@dtbroad5862 Doesn't history teach you that when everyone has the same or close to the same tax rate the rich BLOW UP WITH MONEY and it does not trickle down to the people of that country. We really need to start seeing this as ONE COUNTRY not ONE PERSON. We are to much of a selfish country to advance and be so much better. AMERICA can be the beacon of the whole world if we can just stop being greedy and start helping all of us. GIVE FREE EDUCATION TO OUR YOUNG. Make our country in general SMARTER.
With a flat tax system I belive businesses will give higher wages to their employees.
Why’s that?
@@truereligionfiend738 they pay less in taxes which means they can put more money into their business.
Flat Tax example of 10%
Worker 1: $30,000 × 10% = $3,000 in taxes
Worker 2: $10,000,000 × 10% = $1,000,000 in taxes
I just think we're paying too much in taxes bruh and most of the money is going to bullshit. A person making more money will still pay more taxes and not the ridiculous 20%-22%.
Lulz continue to dream my friend
@AspectKraken wrong actually while your partly correct a flat tax system wouldnt reduce wages it would actually increase them because the government would charge less in taxes so the employees can actually earn more of what they worked for already
@@jembos you think 20-22% is ridiculous wait until you get taxed 37% federal and 11.3% state half of my income is being taxed i fucking hate the irs
A flat tax of 17%. Another hit keep it up.
At that rate the lower and middle class are taking alot less than they were before. Remember they never have loopholes or deductions. Even if you take away loopholes and deductions for the rich in the end they still pay way less than the average worker. What I do not get before Reagan did what he did with the tax code the middle class was at its strongest. They were only one man working in the household. Mom would be able to stay home and take care of the children. He was able to afford and home and car and be able to go on vacations. After Reagan all that started going away. If Republicans who want to push flat tax and want to make America great again. Make the RICH TAX RATE back to 70% and take the burden away from the middle class.
@@arod077 at 17% everybody will pay their fair share, no one should pay more because they make more or less. If you make the rich pay 70% they would most likely go away and go some place else that give tax incentives, and the poor and middle class don't have to worry about paying taxes because they won't have a job. Also you are not taking into consideration property taxes, sales taxes, inheritance taxes, etc. The rich may not pay any corporate taxes but they sure pay a lot of other taxes that neither the poor and the middle class pay.
@@maximilianogarciachirinos3663 The whole idea of rich people leaving is bullshit. The poor and Middle class pay for property taxes and sales tax what the hell are you talking about. We really need to stop kissing the asses of rich people and make them really pay their share cause honestly, they are getting rich cause of us buying their product and helping them create it. The big problem now is there are actual monopolies now. That is not a good thing for consumer. Our government is failing the middle class.
@@arod077 you need to give incentives to the rich so they, the poor and the middle class innovate, that is what is called upward mobility. So if a poor/middle class person create a product that you want to spend you hard earn money on, he will become rich, the same could happen when you create a product or service that other people want to buy, you eventually or most likely will become rich, it depends of how the market react with a product or service. The issue with monopolies is that the government and corporations collude and create barriers of entry so that the small and midsize business don't grow or expand as they should under normal circunstancies. The best thing for consumers in general is competition that many companies compete in the market and no a monopoly, duopoly, oligopoly, etc. In conclusion, free market economy with a flat tax.
Although it seems that flat tax would be less beneficial to people in the lower tax bracket, it is those same people that are the ones that benefit from government programs and let's face it it is not going to incentivise the wealthy. And even though we may not like companies like Amazon they do create jobs we have to face the facts
Hello! Thanks for your video. I'm a citizen of Sweden, which has free (i.e. tax-financed) education to college, and healthcare. I am a wealthy citizen, earning more than $100k yearly, and I am trying to learn more. What I primarily want to know is; where (statistically) does my money go? Do I help my citizens with education and healthcare? In Sweden, the employer will pay basically the cost of the employee (so an employee earning $30,000 yearly would cost the employer ~$50,000 yearly) in fees to the government, which, in turn goes basically fully to the employee's pension. I realized a while back that while my American friends paid basically the same tax from the money they saw (~30%) as employees, it seems they get nothing for their money. I get, for example, proper roads, in addition to the abovementionened perks. Could you elaborate on this system? Thank you for your time.
My aunt is from USA and she is Finnish she has lived in both countries and says that US is cooler and you get more in your hand
@@noname-bt9ky Yes you get more in your hand, but we get less buck of our money compared to other countries. I mean we are the only high-end country that does give their citizens free healthcare. We still live in a damn a country that rich people make money out of SICK PEOPLE.
You did not do flat tax correct. All people don't pay tax on the first amount of money. So in most flat tax don't pay tax on the first $20,000, so in your example, under flat tax he would have paid ~$4,000 and not $6,000. So people who make less than $20,000 in my example pay $0. So the tax is progressive in a way.
Can you explain that better please
Flat tax rate but but maybe have 2 tax rates. 1 for top half and 1 for lower half of earners. One thing I don't like about flat tax is it gets rid of loop holes like charitable deductions which is good but then righteous charities take a big hit
It is not the tax rates that make the system unfair, it is the loopholes. Imagine the owner of a high income company, he pays himself the same salary as an entry level employee to reduce his taxable income but lives a life of luxury because he has at his disposal all of the facilities the company owns, such as a company car, telephone, office at home, hotels for business trips, golf club and restaurant bills paid by the business promotion expenses, most importantly he has access to the company accountant to advise him of all the other loopholes he can benefit from.
The flat tax is fair. I’m for paying the least amount of taxes possible. The government doesn’t make money. However, it is very wasteful with ours.
Are you a Republican?
Political party affliation is irrelevant to the original comment bruh ^
@@Shockkings0714 Having a fair tax system that doesn’t screw over people for hard work shouldn’t be political.
@@Shockkings0714 are you a Democrat?
@@CommanderBruh No. Both parties are terrible and corrupt.
Analyses of who actually pays the bulk of taxes now puts most it on the wealthy and often the poorer (or less wealthy) pay almost none. If a Flat Tax allows larger personal deductible, the Flat Tax system could begin only above a level that allows the individual to live, tax free to that point. Example: you are tax free up to 30K, but start paying 15% anything earned above that. That would allow every tax payer (and designated dependents) enough to pay a certain amount into an HSA for health, IRA for retirement, Educational Savings Account, and have a basic personal income tax free, and minimizing government costs.
No one should be tax free. If ur poor you get government benefits to supplement the issue.
Flat tax. As long as we have no loopholes. The rich would pay more than the do now. Plus it doesn’t discourage you to work more. I had a job once were I made less at 52 hours than just working my normal 40. So I wouldn’t go over 40. If I would try to work more to save money I’d end up with less or the same as working 40.
this makes no sense. if you were hourly, your overtime hours are taxed heavier than the initial 40, sure, but thats still more money. or your wages were being garnished. i think you're being disingenuous, didn't record your time correctly, or are dumb. the government isnt going to tax you over 100% of of your wages for working overtime.
I think that caring about the progressivity of taxation systems is a pretty bad way to go about things - even if you have an extremely regressive tax, like a consumption tax, how you redistribute the money through welfare programs and the like can heavily outweigh the burden on the poor. Caring only about the progressivity, regressivity, or fairness of taxes prevents taxes from being designed to help influence society, for example a land value tax or vehicle miles travelled tax.
Very helpful thank you I'm in economics right now and all this tax info is so hard lol
A semi progressive tax rate is more efficient (assuming loopholes are eliminated)
Economists argue that a 5% Surtax on incomes $5 Million and over could generate $5 Trillion dollars in government revenue in a decade. The government could then allocate a portion of the revenue to get the debt down and see an economic surplus in coming years that would benefit Americans.
Has an economist run the numbers on a flat 10% income tax where you live and flat 10% sales tax where you buy from?
1% to the federal government, 2% to the state, 3% to the county and 4% to the city or town.
The progressive tax method requires more maintenance to assure it's calculated properly. This causes confusion with people who are mathematically challenged. The waters get muddied even further when you start talking about dedections, credits and capital gains. Federally, I'll gladly pay 10% on income and another 5% on anything else I purchase. Outside of that, leave me alone and maintain infrastructure within those limits. A commone sense tax approach would put a lot of politicians in a position to be a normal citizen and not become rich off the system though. It seems we may be back where we started 🤔
IM SMART AND POOR PEOPLE ARE DUMB SO THEY SHOULD BE ROBBED OF BASIC HUMAN LIVING STANDARDS SO THAT I CAN TYPE CONDESCENDING COMMENTS ON TH-cam IN MY FORD F-350'S MACBOOK
@@Eighty8percent spoken like a politician... kodos!
I believe in the progressive tax but on low rates like 5M 9%.
It is fair and promote econmic growth with fair taxes on everyone
That's funny because you pfp is of trump and he doesn't like progressive tax.
@@CommanderBruh neither I, but flat tax where who makes 10k will pay like the one who makes 5B is not fair so progressive tax with so low rates is good
@@amadeo2032 grammar is kinda bad but I guess I get what you are saying
@@amadeo2032 it’s a fair percentage
Still waiting for trickle down economics to work lol
A flat tax with a rate of zero percent would be the ideal.
Lol
How would you pay for anything then?
@@mush1e979 The people who want something pay for it themselves, like the way most things work already.
@@Nanofuture87
People want housing ut still cant pay for it. How would you run a somewhat unbiased military? Public education shouldn't have to be payed by the people attending. It just seems that would be a step back rather than progressing forward.
Like look at healthcare, everyone needs it to basically live, right? Why would you need to pay for that? You need food to live, how would poor people pay for that?
It just seems like class inequality when all you say is, "if you want it, buy it" even though it's more nuanced than that.
@@mush1e979 "How would you run a somewhat unbiased military?"
Assuming we should have a centralized governmental military at all, it could be paid for through donations, lotteries, etc.
"Public education shouldn't have to be payed by the people attending"
Public education shouldn't exist. It should all be private.
"It just seems that would be a step back rather than progressing forward."
Stopping theft and inefficient government waste and allowing individuals to decide what services they want themselves seems like progress forward to me.
"Why would you need to pay for that?"
Because it's a service that utilizes scarce resources and labor. It always needs to be paid for, it's just a matter of who is paying.
"You need food to live, how would poor people pay for that?"
Numerous charities exist to help those who cannot afford basic necessities, and people would have more to donate if they were not being taxed as well as more incentive to do so.
how much would we cut from government if filing was automatic and there was no such thing as 'tax breaks'. It makes more sense today in a 'cashless" society where almost everythign is tracked. Sales tax could also be increased slightly to balance out. The focus should always be on growing the economy product/etc. rather than tax avoidance...we already give too many outs rather than to say no out regardless of who you are "flat rate" no exception. The IRS should only be coming after you for undeclared income (not paying tax) which would likely result from nefarious means and justify the personnel employed by the government.
small businesses can take advantage of a progressive tax. It’s just a matter about educating yourself. Progressive is better.
The UAE has my favourite system.
How does their system work?
There is currently no personal income tax in the United Arab Emirates. There are no individual tax registration or reporting obligations.
Business activity in the United Arab Emirates will be subject to UAE corporate tax at 9% where the total turnover derived from such business or business activity exceeds 1 million UAE dirhams (AED).
The cost of business registration and licenses is significantly higher when compared to Western countries (x2.5).
@@IllustratetoEducateit doesn’t have an income tax system
What about a flat tax where everyone pays the same AMOUNT, not same PERCENTAGE?
Flat tax for companies that produce products & services & job creation, progressive tax for low income people 👍
Progressive tax is 200X more fair.
No flat is more fair cause everyone pays equally
@@imperators_8700 That doesn’t make it fairer. The flat tax would literally destroy the poor. It is the epitome of “The rich get richer and the poor get poorer”.
@@Shockkings0714 well actually no, a flat tax would help the rich so the rich would invest more, and as the rich invest more it would create more job and wealth opportunities for the poor benefit
Also it wouldn’t “destroy” the poor if that flat tax was at a low rate
LOL april fools is over bud
@@imperators_8700 You’ve just repeated the false ideology of trickle down economics. (Hint: it doesn’t work)
A low rate flat tax with no exemptions would be the simplest option. It may be difficult finding consensus regarding that low rate or people transforming that low rate flat tax with no exemptions to a slightly simpler version of what we have in place now. The IRS and tax accountants would have to find a real job lol if tax code was simple. A world without tax lawyers and slimy accountants would be a better place imho. It would benefit the middle class by having the wealthy not spend millions to get out of taxes. In the current system, low income people get handouts and the rich hire attorneys and accountants to get out of paying taxes.
There is no such thing as a "low" flat tax. Everyone in the united states that isn't a multimillionaire making millions per year would see their taxes increase.
First - understand how a progressive tax system works. If you are in a 35% tax bracket - that doesn't mean you just take your taxable income and calculate your tax to be 35% of that. It is PROGRESSIVE - hence the name. There are tax brackets. They range from 10% up to 37%. You pay 10% tax on any amount up to a certain amount (it changes slightly every year). Then the amount of money you make ABOVE that first bracket up to a certain point gets taxed at 12%. Then the money you make above those first two brackets up to a certain point gets taxed higher. Your "tax bracket" in a progressive system is not what ALL your taxable income is taxed at. It's just the highest bracket you reach.
A flat tax does away with this concept. There is one rate - - and everyone is taxed at that rate on 100% of their taxable income. If you take the total amount of revenue the IRS received from individual tax returns and divided it by the number of tax returns filed, you will get the percentage needed to collect the same amount of revenue, but have everyone pay the same rate - - - on ALL of their taxable income. It turns out, that this would be about 27%. That's what would be needed to implement a flat tax. So, it is categorically impossible to collect the revenue necessary to operate with a "low rate flat tax". 27% is simply what it would have to be. What this would do is give a tax cut to only the richest people in the country. Those making several million dollars a year. They get a tax cut. Everyone else - it would be a tax increase, and it would NOT be progressive. Which means the people who will see the largest impact from a flat tax are the poorest people. The less money you make, the higher your percentage increase in taxes would become. Someone used to paying only 10% in taxes would suddenly be having to pay 27% in taxes. Someone who is used to paying 10% in taxes on their first 'x' amount of income, and then 12% on the rest would then have to pay 27% on ALL of it. Someone who is used to paying 10% in taxes up to 'x' amount, then 12% on anything above that 'x' amount up to 'y' amount, and then 22% on anything over 'y' amount....and so on and so on....would instead have to pay 27%........on ALL of it. And why? Why would the guy making $50,000 see his taxes more than double? To pay for the tax cut they'd be giving only to the people making MILLIONS a year. That's how the flat tax would ACTUALLY work. A "low" flat tax that compensates the government similarly DOES NOT EXIST. Unless you make millions of dollars a year. It's only a low rate from their perspective. For everyone else, it's a tax hike. And the less you make, the bigger the hike. That sound like a fair plan to you?
Personally no taxes will benefit everyone lol.
Libertarian-Anarchy where only the strongest fists will survive.
Shouldn’t matter how wealthy or poor u are, there should be a flat tax rate for all. U worked hard for the money u make. Wouldn’t make sense that u pay more taxes if u make more
Well the people who make more DO pay more if there were a flat tax.
If there were a flat tax, you'd actually be giving the rich a tax CUT and making everyone else pay for it by increasing their taxes. The average American makes about $50,000 a year. For simplicity's sake, I'm going to ignore all deductions and just assume this is the taxable income. Right now, someone with taxable income of $50,000 pays $6,307 in tax (for 2023 tax year). Someone with $10,000,000 in taxable income will have paid $3,660,331 in tax.
So the marginal rate for someone with $50,000 of taxable income is 12.6%. The marginal rate for the person with $10,000,000 of taxable income is 36.6%.
In 2023, the government collected about $2.2 trillion dollars from individual taxes, and there were about 163,000,000 individual tax returns filed. So, on average, people paid about $13,500 in taxes each. Obviously, that's not REALLY the case because the people who made more paid more. This is just the average - - so if we want to calculate how the government could still collect the same amount of tax revenue from those 163,000,000 with a flat tax rate, we simply divide the number of people by the amount of taxes collected. When you do this, what you come up with is that in order for the government to collect $2.2 trillion in taxes with a flat tax, everyone's rate would have to be 27%.
Remember, the guy who made $50,000 only paid a marginal rate of 12.6% under the progressive tax system. Under the flat tax system, he will have to pay 27%. So instead of him being taxed $6,307 on his $50,000 of taxable income, his tax would be $13,500 - an increase of 114%.
Remember the guy who made $10,000,000 paid a marginal rate of 36.6% before. Under the flat tax plan, he only pays 27%, so his tax would be $2,700,000. Before, his marginal tax rate was 36.6%, but it's only 27% under the flat tax plan. He gets a tax CUT. He paid about $3.7 million in taxes under the progressive plan, but only $2.7 million under a flat tax. A tax SAVINGS of 27%..
So the uber rich guy gets a 27% tax cut - - - - paid for by the people who make $50,000 a year who have their taxes raised by 114% to pay for the tax cut gifted to the guy making 10 million dollars a year. That sound like a good plan? Because that's what the flat tax does. It is a tax cut for ONLY the people in the highest tax bracket. Everyone else will have higher taxes to pay for the tax cuts for the richest people in the United States. That's ACTUALLY how a flat tax would work.
what this video fails to mention is that the ultra rich will no longer have tax loop holes therefore even more money will given to the tax man, small business owners will be able to keep more money, hire more people, pay them better because not as much money is going to taxes. we would see an increase in consumerism because poorer will have more money to spend. a further investigation into the poverty line is required where those living on or below the poverty line should not be taxed thus giving them an opportunity to eventually escape the cycle of poverty. good video but its one sided made to look as if it's not biased
I like the flat tax
A flat tax is better. Why should I pay more in taxes if I earn more.
because you have more disposable income. $20 to the rich is a lot different to those trying to feed their household,
Obviously high income earners make more for a reason. Many sacrificed and took risks to make wealth. Poor people have unskilled manual labor and don't want school or to risk what they have by investing.. So why should the high wage earners have to pay for the lack of vision of the poor??
I'm poor and you're totally right
BEST IS A SUBJECTIVE TERM...AT LEAST FLAT TAX IS OBJECTIVE!
In progressive tax system where ultra wealthy people idealy should pay more taxes avoid taxes or get waivers from government.
In progressive tax the ritch get more money taken from them and bc there are more poor ppl there votes count more.
Ok first off it's only a small percentage of anything above a certain amount of money and second yes there are more poor so more votes from them but not all the poor think the same and the system should be looking to help the most ppl not just the highest, mabey the ritch shouldn't get out of paying there taxes so often hmm??
Also thx for the non bias opinion Illustrate to Educate!
a 10% on the dollar would work and the government knows this look into it and hopefully people will vote for it
I would love 10% on the dollar so if i made 1 mil i would only have to give away 100k that is as fair as it gets but with the current tax rate they expect nearly 450k in taxes which is a mind fucking amount more than the bottom bracket pays
Flat is best
Definitely flat tax. A progressive tax is unfair in the US where anyone can make a nice income.
Flat tax. Everyone should have skin in the game not to mention simplified less time consuming tax preparation. KISS Keep It Simple S...... Ocham's razor
Here is a another video that gives a more complete picture. th-cam.com/video/kXCGbAv8YPw/w-d-xo.html
I prefer flat tax system
No tax.
Flat tax would be fair if “the more money you have, the easier it is to make money” wasn’t true. However, since that is far from the truth, a progressive tax makes more sense.
I personally don't think it's fair to charge people with more money higher taxes which is why I support flat tax because just because someone has money doesn't mean they are living the life they could actually be poor because they would be paying high taxes
@@CommanderBruh because of tax brackets, no one would end up with less money than someone with a lower salary than them except in circumstances with tax breaks for things like charity donations
@@packblixty2147 I still don't support progressive tax because I don't like "progressive" because that means Democrat and I don't like that
@@CommanderBruh I encourage you to form an opinion based on facts rather than blindly siding with one party on all issues
@@packblixty2147 that's not the only reason why I don't support it. Just one reason. Besides you are not changing my mind I will never agree or side with democrats them racist people.
A Flat Tax Rate combined with Universal Basic Income and Personal Allowance is probably the best way to unite left and right wing people on economic policy.
You could replace the welfare in your country with UBI, have a Flat Tax Rate higher than is currently paid through Progressive Tax and Personal Allowance (the set amount you can earn before you start paying any tax) makes it so that employment *ALWAYS* pay more than just trying to live off UBI. The left would love it because the rich would pay more tax, and the right would love the sound of getting rid of unemployment benefits and having a system that is universally applied without disproportionately punishing you for every pay raise you get. It's literally the same for everyone. Jeff Bezos would be just as entitled to the Personal Allowance and Universal Basic Income, but it would be a drop in the ocean for him compared to how much more he would pay in tax. That, compared to someone earning their poverty in low-paying jobs, getting a Personal Allowance before they get taxed, and UBI topping up their income.
Simplifies the welfare state massively too. All tax rates and UBI can be tweaked to make it however Liberal or Conservative you wanted too 🤷♂️
Where is the UBI going to come from?
Taxation.
@@billedifier8584 well, yeah. The idea is that if you replace welfare like Jobseekers Allowance or Child Tax Benefits and give everybody the same amount, yes, it would cost more to pay everyone, but also cut down on a massive amount of paperwork because you have a smaller government. The amount spent on welfare payments + the amount saved on administrative costs + part of the extra taxes taken from a flat tax rate means everybody except the super rich would be better off, depending on what you set that UBI amount at. You could say UBI is £77 a week. With current expenditure, if you knocked UBI on the head once you receive a State Pension, and you didn't also receive other welfare payments like Disability Living Allowance or Carer Allowance etc... the average person would have to pay £53 in extra taxes to receive £77. Bare in mind, the reason that's possible is because many rich people would be paying far more than £53 each, and some people would be paying nothing because they just live off the £77, as is currently the case.
Obviously there's plenty of tinkering to do with the figures. I'm not an economist, I'm just floating an idea that could be tailored in such a way as to be completely the same for everyone, with minimal administrative costs, and wealth distributed more evenly.
5% flat rate
Progressive tax system the US govt is the winner end of story chnage to flat tax
The United States SHOULD be on a Flat Tax system of taxation. Every business and individual should pay the same percentage of income tax. This would eliminate the overly complicated and unecessary tax system we have in place in the US currently. First off, if all businesses and wage earners were proportionally taxed, it would be more fair to all. It would be a win-win situation. This would eliminate tax loop-holes. No more tax breaks of ANY kind for ANYBODY, would be a more fair and a refreshing change.The IRS would become strictly a Tax Collection Agency, thus able to operate with probably about 20% of the personnel it employs today. There'd be no 'April 15', as taxes would be deducted all-along-the-way, no more high-priced Tax Accountants or Tax Lawyers would be needed. With Flat Taxation, there would be a drastic reduction in paperwork and no yearly changes in the tax laws.
The poor don’t pay federal income tax.
Why can’t we have two flat tax rates??? One for lower classes and one for the rich.
I honestly wouldn’t mind that either.
Because thats not a fair rate
Where do you draw the line between poor and rich? And who's to say that line is the right line?
Or just get rid of the income tax.
Flat tax is way better
I CANT HEAR YOUUU
Flat tax
Flat tax.
FLAT FLAT FLAT