Kansas spends 47% more per resident than South Dakota…63% more than Texas, 68% more than New Hampshire – three states without an income tax. In 2020, states with an income tax spent 52% more per resident than states without one. All states provide the same basket of services to the public, yet every state differs vastly in how much they choose to spend providing services. Interestingly, this argument wasn’t applied to a reduction in the food sales tax rate, and with good reason it’s just a false means of opposing income tax reductions. The tax cut will deprive tax dollars from education, childcare, and healthcare Studies of flat taxes in Europe have found that their implementation increases the number of people working and the number of hours they work, with the most significant effects coming with tax cuts for people with lower incomes. Or, the final rate could kick in at such a level that nobody pays a higher rate than what they currently pay.Ī flat tax increases people’s willingness to work by keeping more in their paychecks. In order to accomplish that and implement one flat rate, temporary deductions until the flat tax is fully implemented or a larger standard deduction for lower incomes could be implemented. $250,000 is a fine living, but I don’t think anyone closer to $50,000 would call themselves “rich.”Īn adequately structured flat tax ensures that nobody pays a higher tax rate or more out of their wallet than they do under a graduated rate system.

In fact, there were almost half a million Kansas tax returns filed in 2020 with adjusted gross income between $50,000 and $250,000. With Kansas’s median household income being $64,521, hundreds of thousands of people would have a tax reduction immediately – that’s far from benefitting only an elite few.

Kansas’s highest marginal income tax rate of 5.7% starts at income in excess of $30,000 for single and $60,000 for married filers. The tax cut will only benefit the wealthy and big business A few weeks ago, we discussed some reasons why a flat tax is beneficial, and now, here are six common misconceptions levied against a flat tax and tax reform in general. States across the country are joining the “ Flat Tax Revolution,” in which a tax system with graduated rates based on income is modified so that one, typically lower, tax rate is applied to everyone’s taxable income.

Would a flat tax work