Any form of a flat tax hits harder the smaller your income. A proportional tax would be more appropriate, as it would have an equal impact.
For example, you buy a gadget that has a $25 consumption tax. If you make $30,000 a year, it has a measurable impact on your financial well-being. If you make $200,000 a year, the same $25 consumption tax would have a negligible impact on your financial well-being. For the consumption tax to have the same impact, it would have to be $166.
This is also why self-funded retirement accounts are a cruel joke for most people. It's relatively easy to save for retirement if you're earning $150,000 to $200,000. If you're making $40,000, it often comes down to choosing between rent, food, and "there's nothing left."
15% impacts everybody equally. You know as in equal under the law. Wealthy people spend more so they would pay more.
Which would you prefer? Uncle Sam takes 15% of everything you earn, or 15% of everything you spend? A consumption tax would allow people to save if they wanted instead of taking home 15% less?
For example, you buy a gadget that has a $25 consumption tax. If you make $30,000 a year, it has a measurable impact on your financial well-being. If you make $200,000 a year, the same $25 consumption tax would have a negligible impact on your financial well-being. For the consumption tax to have the same impact, it would have to be $166.
This is also why self-funded retirement accounts are a cruel joke for most people. It's relatively easy to save for retirement if you're earning $150,000 to $200,000. If you're making $40,000, it often comes down to choosing between rent, food, and "there's nothing left."