FLAT TAX FLAWS

Flat taxes (or “fair taxes” as they’re sometimes erroneously called) are flatly UNfair.

It theoretically sounds “fair” to tax everyone at the same percentage—until one looks at the facts.

HOUSING AND TRANSPORTATION
Families struggling to make ends meet, making a median income of $40,000 annually will pay about 33% of their income for minimum housing expenses and another 17% for transportation (calculated at $3/gallon prices—too low, I know). Those two items capture 50% of their total income.

A family making $1 Million annually can pay $85,000/year for housing and $57,000 for transportation. They pay only 14.2% of their income for the same two items.

FOOD
Assume the wealthy family spends $73,000 on food annually ($200/day). That’s only 7.3% of their income.

The average family spends $4,656/year (a little over $1/day for a family of four) on food. That’s 11.18% of their income.

MEDICAL
Let’s consider that the average family spends $6,600/year for insurance and/or medical bills. That amounts to 15.84% of their income.

The wealthy family can afford to pay $33,600 (high estimate), which reduces their income by only 3.36%.

CLOTHING
The wealthiest family can spend $12,000/annually for clothing (1.2% of income).

The median income family may shop garage sales and thrift shops, buying clothes for a family of four on only $600/year. That comes to 1.44% of annual income on clothing.


Housing, transportation, food, medical costs, and clothing are necessities.

An average family will spend 94.9% of their income on NECESSITIES! They have exactly $2,124.41 left for emergencies, medical co-pays, savings, investments, college tuition savings, etc.

The wealthy family has spent only 56.46% of their income, leaving them with 43.54%--$435,400!

Costs are the same for all income levels. Rising housing, gas, and food prices won’t appreciably affect the wealthy, but can devastate an average family. One missed paycheck—due to layoffs, illness, etc—could bankrupt an average family.

Jefferson said, “Another means of silently lessening the inequality of property is to exempt all from taxation below a certain point, and to tax the higher portions of property in geometrical progression as they rise."