Under flat tax, rich still pay the most
Something that is always left out in the discussion over a flat tax vs. a graduated tax is that with a flat tax, one who has five times more income than another pays five times more taxes. After the standard deduction, exemptions and tax credits, etc., the effective tax rate on high income is typically higher than the effective tax rate on low and middle income.
At the federal level, those in the top 1% of income pay 40% of the income taxes. The Top 10% pay 70% of the taxes. The bottom 50% pay 3% of the income tax revenue. There certainly seems to be something unfair here.
I would guess the numbers would be similar at the state level. It is troublesome that the Democrats' answer to budget deficits is always higher taxes. Needed reform is never part of the discussion.
I always wonder why the Democrats in their never-ending quest to build a nanny state, continue to try to kill the goose that lays the golden egg.
Wade Kiess
Mount Prospect