Why the Flat Tax is Better for America Than the Income Tax

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Did you know that 44 percent of the people in America do not pay any income taxes? This is approximately 66 million out of 151 million that now pay no income taxes. From 1950-1990, the percentage of people that owed no money for federal income taxes and paid no federal income taxes was 22 percent. This has now doubled and is putting our economy and country at its breaking point. Our current tax system penalizes those that work and save money. People who pay no taxes still get to enjoy the benefits. "A revolutionary change in our tax system is fundamental to re-energizing the American economy and restoring the American dream." (Moore) The United States income tax should be replaced with a consumption tax such as the flat tax to make the tax system more efficient and simple. Currently we have a federal income tax in the United States. This system began after the ratification and adoption of the Sixteenth Amendment of the Constitution. This amendment gave Congress the power to collect taxes. Our federal income tax is an inclusive tax. This means that we are taxed a certain percentage of the total money we earn. We are also taxed on monies made from investments and monies we inherit. Under our current federal income tax system, people pay taxes based on their total income. This helps those that don't work or make less. Currently low-income families pay little or no taxes. These people with lower incomes will be the ones most affected by a flat tax system. Also, there are allowable deductions under our current income tax system that will not exist if we change to a flat tax system. Although the federal income tax has loopholes and currently helps low-income families, it needs to be replaced. Congress is currently... ... middle of paper ... ... J. Mitchell, "Flat Tax or Sales Tax? A Win-Win Choice For America," Heritage Foundation Backgrounder No. 1134, August 14, 1997. Daniel J. Mitchell, "577,951,692,634 Reasons…and Counting: Why a Flat Tax is Needed to Reform the IRS," Heritage Foundation Backgrounder No. 1107, February 19, 1997. Moore, Stephen. "Replacing the Federal Income Tax." Cato Institute. 8 June 1995. 14 March 2011 Tomlinson, Shelly-Ann R. "A Consumption Tax versus a Federal Income Tax in the United States". University of Gerogia School of Law. 2007. 24 March 2011. William W. Beach and Daniel J. Mitchell, "Worst Case Scenario: Flat Tax Would Boost Home Values by 7 percent or More," Heritage Foundation F.Y.I. No. 87, February 12, 1996.

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