Re:USA Facts – Federal, state, and local data from governmen...
by JediWing on Tuesday April 18, 2017 @02:06PM
(#14141265)
> The flat tax being regressive means that the poor would have to actually pay more in taxes than they do now, which is very little. That's seen as a bad thing.
It is a bad thing. In low-income households, there is less disposable income. In that case, taxes eat into the cost of necessities (or near-necessities such as broadband for those with slightly higher income). On the other end of the spectrum, for those with large incomes that income is largely disposable.
Dollars are dollars, sure, but there is a distinction to be made between taxing someone's food money and someone's Rolls Royce #2 money.
Re:USA Facts – Federal, state, and local data from governmen...
by dlp211 on Tuesday April 18, 2017 @02:30PM
(#14141506)
In other words: The marginal utility of your first dollar is significantly higher than that of your last. Also known as the law of diminishing marginal utility.
It is a bad thing. In low-income households, there is less disposable income. In that case, taxes eat into the cost of necessities (or near-necessities such as broadband for those with slightly higher income). On the other end of the spectrum, for those with large incomes that income is largely disposable.
Dollars are dollars, sure, but there is a distinction to be made between taxing someone's food money and someone's Rolls Royce #2 money.