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I would like to know how a flat tax is regressive? Most proposals exclude a certain amount of income automatically making it progressive.
Let’s say we had a 20% tax on all income over 50K.
Family A – 60K Taxable income – 10k Tax Paid – 10k*20% = 2K Income Tax % – $2k/60K = 3.33%
Family B – 80K Taxable Income – 30K Tax Paid – $30k*20% = 6K Income Tax % – 6k/80k = 7.5%
Family C – 150K Taxable Income – 100K Tax Paid – $100k*20% = 20k Income Tax % – 20K/150K = 13.3%