Many people would like to believe that the flat tax is so named because it will flatten their finances. That at least is the intended conclusion. A flat tax system is “flat” due to the fact that there is only one tax rate, while today’s system has various rates (Sahadi). Everyone pays at one certain tax rate (Foster). The flat taxation system typically was proposed as a replacement for the income tax, which is a progressive tax (Sahadi). A progressive tax is defined as “a tax whose rate increases as the payer’s income increases” (“Progressive and Regressive Taxes”). In other words, the tax is levied at a rate that increases as the quantity of one’s income increases. The progressive tax system mainly shows in the income taxes. Someone with a high income will pay more taxes than one with a low income (“Progressive Taxation System”). This taxation system was created to collect a greater proportion of tax revenue from wealthy people reflecting the “ability-to-pay” principle. Regardless of which tax system a society or country chooses, the government benefits from it. It is to be said that both taxation systems could be considered fair in their own way, with both having their adv...
... middle of paper ...
...Dec. 2011. Web. 13 June
Nunes, Glen. "Flat Tax vs Progressive Tax - Pros and Cons for the US." HubPages. HubPages, 4
Mar. 2013. Web. 14 Feb. 2014.
"Progressive and Regressive Taxes." Chuck Taylor. Charles L. Taylor, n.d. Web. 14 Feb. 2014.
“Progressive Taxation System: A Brief Study on Its Pros and Cons”. Progressive Taxation
System: A Brief Study on Its Pros and Cons. N.p., n.d. Web. 13 June 2012.
Sahadi, Jeanne. "What's a Flat Tax?" CNNMoney. Cable News Network, 24 Oct. 2011. Web. 14
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- A flat tax is a system of taxation that taxes at a uniform rate, regardless of income level. In the United States we currently use a progressive tax system, which means that high-income earners pay taxes at a higher rate than low-income earners. A flat tax rate is a tax system can uses a constant percentage as a deduction, which is applied to individual income. There are various tax systems that are labeled a flat tax even though they are significantly different. A true flat rate tax is a system of taxation is where one tax rate is applied to all personal income with no personal deductions.... [tags: Tax, Progressive tax]
1206 words (3.4 pages)
- I. You might have heard politicians in the news, talk about overhauling our tax system with a new fix-all idea, the flat-tax. This would simplify our overly complicated tax system and might seem appealing at first glance, however there are serious problems with it. II. 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 progressive tax policy needs to be changed so that it is simpler and does not allow corporations to abuse the tax loopholes.... [tags: Tax, Taxation, Progressive tax, Income tax]
1141 words (3.3 pages)
- In 2010, the top 20% of the nation 's population owned 85.1% of the nation 's income and 80% of the nation’s population only owned 14.9% of the nation’s wealth. Five years later, the top 1% of the United States nation now owns more additional income than the bottom 90% of the nation 's population. Enacting a flat tax would require people to pay the same percentage of their income. Even though a flat tax would enhance the economy 's long-term advancement, a flat tax should not be implemented as the United States new way of taxation because the top wealthiest 1% possess 40% of the nation 's wealth and it penalizes the low-income segment of the population.... [tags: Taxation in the United States, Tax, United States]
1020 words (2.9 pages)
- 6 Jan16 - Important Taxation Facts You Need to Know Before You Go to Singapore - Onsite Blog SBS – Shri Ref Link: http://www.companyregistrationinsingapore.com.sg/11-things-you-need-to-know-about-taxation-in-singapore/ Important Taxation Facts You Need to Know Before You Go to Singapore Liberal Singapore taxation is one of the reasons behind the foreign entities ' move to this business hub. They want to capitalize, in addition to many other things, on easier and affordable tax rates. The foreign corporate, especially, Small and Medium Enterprises (SMEs) and individual entrepreneurs choose to incorporate or extend their business to Singapore.... [tags: Tax, Taxation in the United States]
761 words (2.2 pages)
- Thousands of years ago, in ancient Athens, the city was relatively a paradise, they had civilization, they had theater, they had the arts; they also had an absolute flat tax, everyone paid the exact same tax. If a citizen did not pay the tax, he or she would be sent outside the city which was likely a death sentence. For the vast majority of people, this tax was their greatest burden and caused terrible social problems. For centuries, ancient Athenians explored this issue and discovered a moral insight; there is no economic gain without civilization.... [tags: Economics]
1933 words (5.5 pages)
- Proportional Tax is better than Progressive Tax Student’s Name University Affiliation Proportional Tax Is Better Than Progressive Tax The existing myth holds that the personal income tax system under the progressive marginal rates embodies value of social solidarity, justice, and fairness. The proponents of the progressive tax system entrusts that the rich should pay more than the poor as a way of creating a level of sacrifice (Wiegarden, 2012). To supporters of the progressive systems, the sacrifice is progressive tax rates and measurable thus produce equal results.... [tags: Tax, Progressive tax, Taxation, Income tax]
1468 words (4.2 pages)
- Whether or not the United States government should adopt a flat tax system in place of its current progressive tax system has been a hotly debated topic for decades. A flat tax is a tax system which refers to a tax on household income that is the same amount for each household- regardless of income level. The United States currently implements a progressive tax system, meaning that high-income earners pay taxes at a higher rate than low-income earners. The two systems differ greatly in their objectives and methods of execution and typically cause a good deal of unrest amongst lawmakers and citizens alike.... [tags: household income, class distinction]
930 words (2.7 pages)
- In the United States, an income tax is imposed on individuals on the federal, state and local levels. The United States uses a progressive-rate tax system. This system requires taxpayers to complete forms, such as the 1040 and to try to interrupt the tax code so it is beneficial to the taxpayer. Additionally, the progressive tax system is comprised of deductions, tax credits, and exemptions, which increase behaviors and activities that are focused on those areas. These tax adjustments can be allocated to provide additional relief to low-income citizens, or to encourage incentivized behaviors for citizens.... [tags: Taxation in the United States, Tax, Income tax]
1059 words (3 pages)
- There are fifty one states in the United States of America. Each one of them differs from the other one. Indeed, the role and type of the government that each states has is various and unique. Comparing two states, California and Texas, there are obviously differences between them as well as similarities. California is a state located on the West Coast with rich and diverse landscape. Nowadays, California reflects the whole complex of problems related to development of economic and political life of a country.... [tags: states, lower rate, government]
1007 words (2.9 pages)
- Thousands of years ago, in ancient Athens, the city was relatively an intellectual bastion, they had civilization, they had government, they had theater, they had the arts, and they had sciences; they also had an absolute flat tax, everyone paid the same tax. If a citizen did not pay the tax, he or she would be sent outside the city which was likely a death sentence. For the vast majority of people, this tax was their greatest burden and caused terrible social problems. For centuries, ancient Athenians explored this issue and discovered a moral insight; economic gain is not possible without government and a civilized society.... [tags: Ancient Athens, Taxation]
2677 words (7.6 pages)