Flat Tax System Essay

Flat Tax System Essay

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The current tax system is extremely complicated and punishes those who are successful by taxing people more than the average citizens. If flat tax were to be in the United States it would create fairness within the economy and be less complicated. Flat tax would not punish people for having higher income; instead flat tax would create equality to all tax payers. The taxpayers would not be complaining to the neighbors or their close relatives about their tax rates and how different they are from each other. Despite the fact that federal employees would be out of jobs, the United States should have flat tax implemented because flat tax spans all income brackets of taxpayers and would have low rates with no deductions or exemptions.
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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