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Tag: Flat Tax vs FairTax

Flat Tax vs FairTax

Flat Tax vs FairTax

Finance
The Flat Tax and FairTax are thought of by many civic-minded people. The Flat Tax will tax all income above $25,000 for singles and $30,000 for families of four or more at a rate of 15%. This rate would also apply to corporations. The FairTax has a flat rate as well, but it does not apply to income. The FairTax proposes to levy a 23% inclusive tax on all goods and services, meaning that a cart of groceries today costing $77 before tax will cost $100 with the FairTax. Corporations would pay the same taxes as everyone else, just as the rich would. With both of these tax plans appearing to have so many similarities, it is important to note some differences. The Flat Tax Taxes Income While the FairTax Taxes Consumption To clarify the biggest difference between these two plans, it...