> Now everyone pays e.g. 30% but gets a $12,000 credit, so someone who makes $40,000 is effectively paying zero, someone who makes $80,000 is effectively paying 15% and the effective rate approaches 30% as the number goes up.
This only maybe works if you count capital gains as regular income. Otherwise they do the Steve Jobs $1 salary thing.
> This only maybe works if you count capital gains as regular income.
Yes, that's how a flat tax works. It's flat, for everything.
The nominal reason capital gains has a lower rate is that the amount of the gain is calculated without respect to inflation. But that's dumb; just use the normal rate and actually do the inflation adjustment from the time of purchase instead.
Yes, that's how a flat tax works. It's flat, for everything.
The nominal reason capital gains has a lower rate is that the amount of the gain is calculated without respect to inflation. But that's dumb; just use the normal rate and actually do the inflation adjustment from the time of purchase instead.