# Economics

posted by .

I'm trying to research for a paper about why we shouldn't have flat tax rate, and a reason that i'm seeing people putting online, is that a flat tax rate of say, 18% would decrease tax revenue?
Can someone explain how?
I don't understand how taxes work.

• Economics -

Income taxes take a part of a person's income.

If you make \$50,000 a year and pay 10% of it in taxes, you pay \$5,000.

A flat tax would mean that rich people would pay the same percentage of their income as poor people.

## Similar Questions

1. ### debate

1. What are the advantages of our current tax system?
2. ### Tax

Anyone knows what's the tax rate in Minnesota?
3. ### economic

Do a google search on the concept of a “flat tax.” Explain how this tax scheme works and does it meet the criteria of tax efficiency and tax fairness/equity?
4. ### Accounting Tax

A taxable corporation faces a flat 35% marginal tax rate. What is the tax savings from an additional \$100,000 deduction?
5. ### Finance

Calculate die after-tax cost of debt under each of the following conditions: a. Interest rate of 13%, tax rate of 0% b. Interest rate of 13%, tax rate of 20% c. Interest rate of 13%, tax rate of 35%
6. ### Taxes

In the US, we have a progressive tax system, which means higher incomes are taxed at a higher rate. But capital gains are not - they are taxed at a flat rate of 15%. This is an example of an institution, a formal "payment" rule, that …
7. ### Taxtation

Another client, Ms. Dunham, has asked you to help her understand how her tax is computed. You need to provide Ms. Dunham with the following: An example of how to calculate the tax liability using the tax rate table and the tax rate …
8. ### Math

1. For a particular year, a company has gross annual income of \$780,000, annual expenses of \$270,000, and allowed depreciation of \$60,000. The company is located in a state where the first \$200,000 corporate income is tax-free, and …
9. ### Math Tax Rates/Percents

Calculate the tax for each given rate. Select the rates with tax greater than \$3. \$45: Tax- 7% \$80: Tax- 2.9% \$66: Tax- 10% \$29: Tax- 11% \$55: Tax- 4.5% My answers: The first one The third one The fourth one Am I correct?
10. ### Economics

Which of the following is usually the most regressive tax?

More Similar Questions