A progressive tax is a tax that takes a larger percentage from the income of high-income people than it does from low-income people.
So, irrespective of your view on this, the tax is not progressive.
Posted by gregor at November 17, 2004 09:30 PMAlthough people on low incomes would pay less of their income (in percentage terms) than people on high incomes due to a higher threshold for the start of any taxation. Those under the threshold pay 0% while those over the threshold would see an increasing % of their income going to taxation.
Regardless, I regard the flat tax as a 'progressive' policy in terms of empowerment of the people and reinvigoration of democracy. And 'progressive' in that the tax take increases as does income even if the % did not were there no threshold.
Posted by Paul at November 18, 2004 03:15 AMIn the face of an obviously fair and just system, that encourages work and investment and provide for a growing economy, the only thing I can see that would stop a flat tax from being implemented is the lobbyist who currently benefit from the system we have. I'm sure they have enough "persuasion" to argue convincingly that a flat tax would not be beneficial for the economy, when in fact they are the only people it would not benefit. With such selfish people around is it any wonder the rest of the country has to suffer unfair and complex legislation.
Posted by David at November 24, 2004 03:21 PM