And I simply don't understand this mentality that a flat tax somehow 'subsidizes' the wealthy. A true flat tax on ALL earned income whether that income is generated via piece work, commissions, hourly wage, salary, business profits, capital gains, interest, royalties, profit on property when it is sold, or whatever, applies equally to the rich as it does to the poor wage earner. And the rich have a lot more of those types of income to tax.
It would fix the problem Warren Buffet complained about with his secretary paying a higher percentage on her income than he does. It would tax the investment income that Mitt Romney lives on at the same rate that wage earners pay--right now he benefits from a lower rate on capital gains.
The rate needs to be low across the board to keep from hurting the poor and also to prevent slowing economic growth by excessively taxes investment income.
But with say a 10% flat tax, the guy making $10,000 will pay $1,000 in taxes. The guy making $1 million will pay $100,000 in taxes. And both will feel the pinch if they vote to raise those taxes so both would need a really good reason to do that. It wouldn't any more be the lower income wanting the rich to pay more and more while they enjoy paying much less.
It really is not a matter of reality. Those that demand a flat tax as described somehow subsidizes the wealthy say this because that has been the mime for a very long time. It is essentially a trained response as the one thing that seems to be ingrained is that the rich are somehow getting the better of everyone else through taxation. Flat taxes would fix any and all imbalances that they receive but that is not good enough. Those that buy into the class warfare will not be happy unless the rich are somehow paying a MUCH larger share than they are. I wont say others because that is not really the goal. The goal is that those that make more MUST pay a much larger share than they are paying. You see this in the people that idolize the 91 percent range without any understanding of the realities of the tax code that spawned that rate.
I blame the public school system that indoctrinates with social theory more than it teaches basic math including percentages, calculating profit and loss, and concepts such as supply and demand and the value of labor. I blame the media that indoctrinates with social theory more than it informs. And I blame a self serving government that benefits itself (and not much else) by perpetuating skewed concepts of fairness and promotes a sense of entitlement and class envy. I blame those who worship almost all government and those who reject almost all government; those who think they have the right to dictate how we must live our lives, and those who think freedom means preventing people from organizing for mutual benefit and quality of life.
All of it tears apart the basic spirit of human liberty and potential that the Founders intended that we have.
And it has resulted in a steady erosion of our individual liberties, a shift to ever more authoritarian government that force us into an increasing role to feed it and keep it growing, and a tax code that has far more pages and words and complexities than that Declaration of Independent, the U.S. Constitution, War and Peace, and the Bible and probably half of most county libraries combined.