A Fair System Of Taxation

Flat tax and progressive tax either can be considered fair or well put together for the American people since it has a rational approach towards taxation. However they do vary from each other when it comes to its treatment of the wealthy people, and each of this system is biased and discriminatory, but at least one good aspect of progressive tax is that people of lower income are still paying low and under flat tax they will end up paying same as a wealthy individual who is well. Only because the name of a policy sounds progressive does not mean its action has to be. Furthermore, the current progressive tax policy is only a few steps away from becoming the flat tax and there is no difference among these two. So if the flat tax is being implemented in the United States it will have validity to do more harm to the majority of the Americans then giving them any

One popular method of tax reform that some of the experts in this field think is worth considering is implementing a flat tax also known as a consumption tax. J. D. Foster says that “any tax with a single tax rate could be considered a flat tax.” An article from the website Tax Policy Center defines consumption as being “income less savings” (Gale). The major difference between an income tax and a consumption tax is the way savings are taxed. With an income tax all income is taxed when it is earned and again when interest is earned on any savings. Critics of an income tax say that this is double taxation and

America currently has a progressive tax system. This system is identified by the fact that there are percentage brackets which are determined by one’s income, as the income increases so does the percentage of the income being taken out. The progressive tax can be illustrated by a curved line going upwards on a graph plotting income bracket on the x axis and amount of money being taken out on the y axis. The flat tax is the proposed tax which is signified by having one single percentage throughout all income brackets this would look like a straight line on the graph explained above.

Throughout the entire existence of any form of government, there has always been taxes. Most of the time (if not all), people hate taxes. With this being said, the United States has adopted a progressive tax since its very existence. We believe that if our nation is placed under a flat tax system, our economy will operate more effectively. If we incorporate a flat tax system we will be able to ensure fairness among all citizens, eliminate tax loopholes, and allow opportunities for business expansion. With this being said, we will be examining the strengths and weaknesses about the flat tax system and how it has been used into practice.

Within the United States, there is an unequal collection and distribution of resources. The current unequal or socially unjust tax system is a direct contrast to the social justice theories of John Rawls. The taxation discrepancy has ramifications on many important aspects of our society, such as health care, employment, old age security, and education. These issues affect everyone in our society, regardless of age, race, gender, or sexual orientation. Thorough more equal taxation, we have the potential to create a more society as a whole.

A flat tax system in the United States by definition refers to taxing household incomes at the same rate regardless of income levels. Advocates of a flat tax system argue that it will simplify U.S. tax codes and eliminate other taxes. Opponents of a flat tax system argue that it only benefits wealthy individuals and would eliminate the IRS causing wide-spread unemployment. Here are some of the pros and cons of a flat tax system.

With having the above statements showing the cons of each system, it is fair to say that having a flat tax would be good for our system. It would make everything equal for every class, and not have any or as much negative comments directed towards it. Changing from our “burden” system to flat tax would be a win win for

It is the general agreement of tax payers everywhere that the current tax system is way too complicated. You either need to have a certified public accountant help you do them or a specialized tax program to walk you through it. Not only that, but the costs associated with having someone prepare your taxes or buying the specialized computer program needed to navigate the myriad of entangled tax codes and laws can become quite expensive. But it is not only expensive for us, the individual tax payer, but it is also expensive for businesses and it is extremely expensive for the Federal government. Not

One theory about the use of the progressive taxation is that people or businesses who earn the same or a similar amount of money should be taxed in the same or a similar way. A good example of that theory states that two individuals making $75,000 per year should be taxed the same amount, regardless of how they earned their income. While most countries have some form of progressive taxation, it is usually combined with other taxes, such as a sales tax, and few countries treat all income as exactly the same. This kind of taxation is still in effect today, bigger corporations are taxed more than the smaller mom and pop businesses.

The use of flat (proportional) tax rate seems like a fairer option in my opinion. The reason why I think this is because we talked in class that the more money you make the higher your tax bracket is requiring the rich to pay more and the poor to pay less in comparison. This is causing companies to go overseas rather than staying in America which in effect could cause less jobs in America in general. Secondly, I feel that it would make a simple system and allow everyone to know exactly how much their going to pay for taxes.

Our current income tax system today is very complex, unfair, inhibits saving, investment and job creation, imposes a heavy burden on families, and weakens the integrity of the democratic process. It can't be fixed and must be replaced. The U.S. income tax code is a long and complex system. The income tax system is so complex; the IRS publishes 480 tax forms and 280 forms to explain the 480 forms. The IRS sends out eight billion pages of forms and instructions each year. The administrative costs of the tax system far exceed those borne directly by the IRS. Each year Americans devote 5.4 billion hours complying with the tax code, which is more time than it takes to build every car, truck, and van produced in the U.S.

Did you know that an astonishing 43.4 percent of the people in America do not pay any income taxes" (McCullagh 1)? This is roughly 65.6 million people that aren't paying taxes and this is putting our economy and country at its breaking point. Our current tax system penalizes those that work and save money. People that pay no taxes still get to enjoy the benefits. The United States needs to look at which tax is fairer to the people and easier to administer by the government. Although some may disagree, the Flat Tax should replace the income tax to simplify and bring fairness to the system, increase income, and create jobs.

The supporters of the Flat Tax system are quick to point out this system's attributes but not as quickly as the criticisms by those who oppose it. The filing of taxes each year would be much easier because there would be one set rate to pay. This type of system also discourages, and makes it almost impossible, to find and use any existing schemes that are present to avoid paying taxes. However, because there is a set rate at which everyone needs to pay, this system is quite unfair. Those who earn and have a lot of money should not pay the same amount as someone who has only a fraction of their wealth. The wealthier you are, the more you should pay because you can afford it. If there is a set tax rate it would be too high to some people and pocket change to others. A system like this also takes away many, if not all tax deductions. An event like this would cause irreparable injury to the middle class, who often times rely heavily on money they will get back from tax deductions.

We have all heard the famous quote by Benjamin Franklin who stated, “In this world nothing can be said to be certain, except death and taxes.” (“Benjamin Franklin Quotes”) We find this to be true as we begin working and feel the pain of money being taken from our paychecks. Then we face the chore of having to file income taxes yearly. Although there are many taxes we are subject to, most people are referring to federal income tax when they complain about taxes. There has been debate for decades about the current system but there has been no agreement on how to fix it. The United States currently has a progressive tax code which means people pay taxes according to their earnings. This has been in place since the time of Abraham Lincoln. An alternative

Policy makers have introduced a solution to the staggering proportion of taxes that Americans spend. The flat tax, based on an idea developed by Professors Robert Hall and Alvin Rabushka of Stanford University to create a fair, simple, and pro-growth tax system (Mitchell 1, 11). There are four basic criteria that make up a flat tax. First is a single low rate on taxable income, the baseline for taxable income would be raised to a certain amount dictated by a personal exemption. Second is simplicity, all Americans would fill out the same postcard-sized form to pay their taxes. Third is the reduction or elimination of deductions, credits, and exemptions, depending