Quote:
Originally Posted by Occasionally6
The problem with flat taxes, including goods and services taxes, is that they are highly regressive. Low income earners spend a much greater proportion of their income (often all of it) than do those on higher incomes.
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A regressive tax system is when the tax rate decreases as the amount subject to taxation increases. A progressive tax system is the opposite, which is what we have now. A flat tax is the proportional tax policy. The poor group and the rich group have the same 90% of their income to spend after taxes.
If you ask a libertarian like me, its not up to any government to tell someone, "Hey, you make a lot of money and we don't think you need it all, so we are going to take more of a percentage of your income, simply because of the amount of money you make". It's not any of the governments business what we spend our money on and they don't have the authority to tell us how much we should have or need to have.