GOP pundits and politicians have been throwing around the concept of a flat tax for quite a few years. They've suggested a one size fits all tax rate ranging from ten to eighteen percent, but what impact would this really have on taxpayers, especially if all deductions, credits, and personal exemptions were eliminated.
Those who would benefit the most from a 15% flat tax would be those earning wages of more than $379,150 a year. Almost all the rest of us would experience a tax increase with lower income earners seeing the most significant increases.
Why, you may ask? The reason is that very few of us pay the full amount of our actual tax rate. For example, someone who falls within the 25% tax bracket may actually pay only 10% in taxes after applying all the legal exemptions, credits, and deductions. Even those filing EZ tax forms benefit from standard deduction.
I'm not opposed to a flat tax, but I am opposed to the same flat tax applied to everyone. Bring on a more simplified tax code, but one size will not fit all.
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