Why the Flat Tax is Better for America Than the Income Tax

Do you know that 44% of Americans do not pay income tax? This is about 66 million people out of the 151 million people, no income tax is currently imposed. From 1950 to 1990, the proportion of those who did not pay federal income tax and did not pay federal income tax was 22%. This has now doubled, breaking through our economy and the country. Our current tax system punishes those who are effective and save money. People who do not pay taxes can still enjoy these benefits.

What is the current income tax system in the US? In the United States, there is currently a gradual income tax system (see 2016 tax rate). But people like Warren Buffet claim that even though the rich pay more, the current taxation system is "pretty boring" and in some cases even "retrograde". Buffett's effective tax rate is much smaller than the secretary's gross income, he pays a much higher gross price, he pays a lower capital gains tax rate, so he only pays a little. . Two big things to note are PAYROLL TAX, which is a heavy burden for low-income earners, and SALES TAX, which is usually decreasing (and other similar taxes including property tax). I see most households, this is about income tax, not payroll tax

Taxes other than income tax (sales tax, salary tax, etc.) tend to regress. Therefore, keeping income taxes flat can lead to a recession in the overall tax structure. Under this structure, people with lower incomes tend to pay higher percentages of their total revenues than rich people. Percentage of household income as a return on capital (dividends, interest, loyalty, income of non-corporate enterprises) has a positive correlation with total household income. Therefore, a single tax limiting wages seems to make rich better. Changing the tax base may change the impact. Fixed taxes can target income (not wage), which may primarily impose an average tax burden on all incomes including those who earn income through investment income.