Reply #19: the point is that they will be collecting more money during the year on working people [View All]

[haele]

Who will then, depending on whatever "progressive structure" is proposed, get their money back in the middle of the next year anyway. Families making under $60K pretty much get everything back with the current tax structure anyway, even if their only deduction is the standard + the "renter's" deduction. Heck, without the renter's deduction, they still will get at least half the taxes they paid in back.

My complaint with the idea of a "3%" flat tax is that in California, making under $50K a year, I don't have an additional $100 a month to spare that the flat tax will require my employers to take out of my paycheck. I don't know many families that make around $50K a year that can afford that on a monthly basis.

My understanding of a flat tax is that there are no exemptions when you pay as well as limited deductions when you file. Most working people pay through their employer - and their employer has to follow the rules laid out by the Franchise Tax Board in terms of how much goes to the state per pay period.
It's the exemptions that are "allowing" the lower income levels to not pay very much in taxes over the year - again, most California families with incomes under $60K are basically loaning the state money interest free every paycheck.

Haele