Posted Apr 10, 2012, 6:03 PM
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My Spoon Is Too Big
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Join Date: Oct 2006
Location: Calgary
Posts: 9,191
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I'm not against a flat tax with a high enough 'personal amount'.
Set the personal amount to whatever is determined to be the minimum one needs to make to just simply survive. Lets say that is 20k. Lets say then the flat tax rate is.. hmm 20%
So someone who makes 25k = 25k-20k = 5k x 20% they pay 1000 tax, which is 4% of 25k.
Someone who makes 500k = 500k - 20k = 480k x 20% they pay 96k, which is 19.2% of 500k.
The gist being that everyone pays the same rate on their 'disposable income', but their income necessary for survival is tax free.
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