Flat Tax in California? No Way!
June 7, 2009 1 Comment
Arnold has asked for a proposal…. Background: There is a commission looking at ways to overhaul the California tax system. It, like many tax systems, is in need of some fixing and a flat tax is one idea.
A flat tax is a tax on income that is, well, flat. For example, Bill Gates would be taxed at 15% and so would the guy working at McDonalds. Obviously this is not a popular move for proponents of the progressive tax system which is our current system. Here is a decent explanation of it.
There are benefits to a flat tax system one of which would mean less cheating on your taxes to stay in a lower bracket. Another is that it is morally fair though not necessarily economically fair. I believe it is economically fair but there are others out there, typically leaning towards the left, who believe a progressive system is most fair because it comes the closest to levelling everyone economically. e.g., taxing Warren Buffet so that he has as much disposible income as the waiter at Outback you had last week.
I would like to see the Flat Tax tried.