Are you rich? According to dictionary.com; “rich” is defined as “having wealth or great possessions; abundantly supplied with resources, means, or funds; wealthy”. In 2014, the average household annual income was $73,298; per the U.S. Census Bureau. Roughly 29 percent of Americans live in lower-class households; “lower-class” meaning having the lowest social rank or standing due to low income. The rich 1% is a group composed of roughly 3,231,000 people averaging an annual household income $1,260,508, as per the Washington Center for Equitable Growth. According to Paul Bucheit in “The rich pay fewer taxes than the poor, and get more services”, he states that “Poor Americans pay about 25 percent in total taxes, while the rich 1% pays anywhere from 18 to 23 percent”; a large sum considering the lowest of the 1% brings in a net worth of at least $770,000. Vanessa Williamson published an article last year titled “How much do the poor actually pay in taxes? Probably more than you think.”, where she …show more content…
Although flat tax sounds more fair, in reality, the lower-class would not benefit if the rate was not initially lowered. A person classified as “lower-class” would be much lesser off than a person in the rich 1% if flat tax is implemented, as either way, the wealthy will still have more money in the long run. Flat tax would not be beneficial for anyone regardless of their social status; as lower-class Americans already pay 25% of taxes, while rich Americans pay as little as 18 percent. Even if the government implemented a flat tax rate in the middle, 21.5 per example, that in return would raise the tax of some in the lower-class. This is a problem because if a person who makes $12,060; the top of the poverty line in Minnesota, without financial assistance like welfare and grants, individuals would no longer be able to support