How does this happen? Anyone have the math? Taxes are confusing.
But then I looked up the source. The answer is flat taxes. If everyone has to pay $100, and the poor person making $200 has to pay 5% on top of that, and the rich person making $10,000 has to pay 30% instead, the poor person’s total tax is $110, or 55%, and the rich person’s total tax is $3,100, or 31%.
Flat taxes are called regressive taxes because they charge a higher proportion of pay for poorer people.
I was going to ask:
But then I looked up the source. The answer is flat taxes. If everyone has to pay $100, and the poor person making $200 has to pay 5% on top of that, and the rich person making $10,000 has to pay 30% instead, the poor person’s total tax is $110, or 55%, and the rich person’s total tax is $3,100, or 31%.
Flat taxes are called regressive taxes because they charge a higher proportion of pay for poorer people.