Warm Southern Breeze

"… there is no such thing as nothing."

A Real Life Example Why A Flat Tax Is Inequitable And Unjust

Posted by Warm Southern Breeze on Friday, November 10, 2017

Recently, a physician friend of mine had asked this question of me:

“As far as Tax goes, why not use a flat tax? I can’t understand why it won’t be considered?”

My reply to him follows.

“The so-called “flat tax,” which would be a no-deductions type of single percentage levies “across the board” upon everyone, bar none, is a disproportionate burden to those who make less.

“Consider the following, which is a real-life example to illustrate the case in point:

“A female friend shared with me that she and her spouse have a 50/50 sharing agreement with household expenses. That is to say, she pays half, and he pays half. He is retired, she is not. In his working years, he was a six-figure income man, and has been retired about 10 years, having taken early retirement. His pension is approximately 80% of what his average income was during his working years, which we could say is $80,000. (A six-figure income 20 years ago was an EXCEEDINGLY handsome income, even by today’s standard.) Now that he receives Social Security, which we could say is approximately $20,000, he’s STILL earning six-figures annually.

“However… his wife, whom is still working, and 20 years his junior, earns approximately $50,000.

“Now, presuming that household expenses are $1000/month, or $12,000 annually, her portion of that is $6000, as is his.

“However, again… the proportion of her income which that 50% takes is 12%, while for him, it only represents 6%. So, in effect, even though she makes LESS, she PAYS MORE.

“And that is exactly how and why a so-called “Flat Tax” is INEQUITABLE.”

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