A flat tax is a taxation system with a constant marginal rate that applies to individuals or a corporate income. Three different types of flat taxes exist: true flat rate income tax, Marginal, and flat taxes with limited deductions. True flat tax is a simple tax rate with no deductions or exceptions. Marginal flat tax is a flat tax with deductions allowed. Flat tax with limited deductions allows deductions on certain items including charitable deductions and home mortgage interest. Here we’ll look at the true flat tax rate and the positive influence that comes with it.
Flat tax will make taxes fair for all individuals in the United States. No matter what social class a person is, they will end up paying the same rate. An example is “A person who makes $100,000 a year paying 20% taxes pays $20,000. A person, who makes $50,000 a year paying the same 20% tax rate, pays $10,000” (Forbes). This is fair for all people because they will pay the same tax rate and get a little more money to keep for themselves....
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...to Policy Report. July-August 2007. 30 October 2013.
Osterman, Walt. Why Americans Will Never Have A Flat Tax. 28 November 2012. 25 September 2013.
Pascale, Christospher. Business. 16 October 2013. November 6 2013. <
The New Flat Tax: Encourages Growth and Job Creation. 19 January 2012. http://www.heritage.org/research/factsheets/2012/01/the-new-flat-tax-encourages-growth-and-job-creation. 18 September 2013.
Wanniski, Jude. A Flat Tax Would Produce Explosive U.S. Economic Growth. n.d. 01 December 2013.
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