Implementing a flat tax without significantly increasing the deficit is impossible without shifting the burden from the rich to the middle-class, instead our current tax policy needs to be changed so that it is simpler and does not allow corporations to abuse the tax loopholes.
I’ll first go over the principle problems with the flat tax, then talk about our current system’s failures, and finally finish off by offering some reforms to fix our tax code.
(transition: So to start off I will go over why the flat tax is not a good idea)
Instituting a flat tax would have serious implications for our economy
First and foremost it would shift the burden of taxes from the rich to the middle-class
According to the study”Simulating a Flat Tax Model: What Are the Likely Outcomes?” conducted by accountant Brita Boudreau and professor Thomas M Dalton, any flat tax that could generate the same amount of revenue as our current system would inevitability force the middle and working class to pay more taxes
This is unacceptable in a time as the top one percent of income earners
have seen an earning increase of 250% since 1979, while the middle
class has stagnated. as reported by economists Dr. Michael Greenstone
and Dr. Adam Looney i...
... middle of paper ...
... TAX” that if we close corporate loopholes we could lower the marginal corporate tax
rate from 35% to 9%. They predict that closing corporate tax loopholes has the
potential of growing the US economy.
This is the most important measure we need to take, no tax policy will
be effective if companies are allowed to continue skirting them
This would create an overall more fair system, which according to my
audience analysis, this class’s largest concern
While the specific numbers are disputed both the GOP and Democrats agree reducing the rates while eliminating tax deductions is a viable option to simplifying the tax code
Economist agree according to the la times, saying our complex tax laws are inefficient and costly.
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