Flat Tax = Everyone pays an equal percentage. Does it work on paper/in theory? In practice? The idea behind it is simple: Simplicity.
The tax code has many categories that create complexity manifesting in what is called compliance costs. The time and administrative costs for businesses, individuals, and goverment/beaurocracy, to organize and execute such finetuned calculations adds up to dollars. Billions according to an analysis like this.
Right now we have seven tax brackets among three categories of people, that's 21 categories, and it gets even mroe complicated after that.
Forget the articles, links, and news. I'm posting them for a context that we can all start from. I think everyday people don't often confront this kind of issue in the news, online, and certainly not in school. I'm trying to figure it out just like everyone else is. But I gotta say, it seems like the only people a flat tax hurts is the poor. In the youtube link the guy even says well make it 0% tax for family's below 50K and then the flat 17% for everyone else.
So, what gives?
