The Flat Tax System Of The United States Essay - 1663 Words

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. First off, there are many people who do not even know what a flat tax is. By definition, a flat tax is described as, â€Å"a very precisely defined and coherent tax structure: a combination of a cash-flow tax on business income and a tax on workers’ income, both levied at the same, single rate† (Keen 4). Now, this just means that every person and every business, no matter the income, would be taxed at the same rate. Realistically speaking, when people talk about taxes, it is a matter of who wins and who loses. If we decided to adopt a flat tax system, people of lower income families would be suffering, â€Å"Under the flat tax, low-income households would lose because they now pay no income tax and are eligible for a refundable EITC of up to $3,370† (Gale 155). With this being said, the families of higher income would actually be thriving of a systemShow MoreRelatedThe United States Tax System and Flat Tax Essay1892 Words   |  8 PagesThe United States Tax Sys tem and Flat Tax The United States tax system is in complete disarray. Republicans and Democrats agree that the current tax code is complex, unfair, and costly. The income tax system is so complex; the IRS publishes 480 tax forms and 280 forms to explain the 480 forms (Armey 1). The main reason the tax system is so complex is because of the special preferences such as deductions and tax credits. Complexity in the current tax system forces Americans to spend 5.4Read MoreUnited States Should Institute A Flat Tax System1524 Words   |  7 Pagesnation is to tax its people, like the Federal Income Tax. Many question the Federal income tax, asking if this is a tax to support the welfare of our nation, or has it become a wealthy industry under the guise of social justice. The United States should institute a flat tax system, because it is simpler, it would eliminate double taxation. And remove obstacles to building wealth. A flat tax would be much easier to calculate and enforce, reducing the enormous cost in complying with current tax codes.Read MoreFlat Tax Reform : A Call974 Words   |  4 Pages Flat Tax Reform: A Call to Action â€Å"I love paying my income tax! This tax system is so easy to understand!† said no United States citizen, ever. 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