ydoaPs Posted February 7, 2011 Share Posted February 7, 2011 The problem with a flat tax is that it disproportionately burdens the poor due to the fact that the cost of basic needs does not go up with your income. Could an overhaul of the tax system fix that? What if by filing your taxes, you not only provide information for correcting last year's taxes, but also provide information to inform the next year's taxes? Could gathering information like city of residence and number of children then using that information to calculate the actual needs of the household reduce the burden on the poor while maintaining a flat tax. If we take that amount of basic needed to live and make it non-taxable income then tax the rest, would that allow us to have a higher flat tax percentage with the majority of the people actually paying less in taxes? Obviously data gathered by filing taxes would be used for corrections(like having a baby, paying for a funeral, moving, etc). 1 Link to comment Share on other sites More sharing options...
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