Reich: The Flat-Tax Fraud, and the Necessity of a Truly Progressive Tax

[pampango]

The flat tax is a fraud. It raises taxes on the poor and lowers them on the rich.

The details of flat-tax proposals vary, of course. But all of them end up benefiting the rich more than the poor for one simple reason: Today’s tax code is still at least moderately progressive. The rich usually pay a higher percent of their incomes in income taxes than do the poor. A flat tax would eliminate that slight progressivity.

Simple fairness requires three things: More tax brackets at the top, higher rates in each bracket, and the treatment of all sources of income (capital gains included) exactly the same.

Rather than merely oppose the flat tax, sensible people should push for a truly progressive tax – starting with a top rate of 70 percent on that portion of anyone’s income exceeding $5 million, from whatever source.

http://robertreich.org/post/11753807617

A "truly progressive tax" would go a long way to curing what ails our society.

[pangaia]

1. Reich should be Treas Sec,....

... or whatever position would actually give him some clout. He, Howard. Paul, Elizabeth.. we need the A-Team..

[highplainsdem]

2. K&R