Replacing the Income Tax With the Flat Tax Essay

Replacing the Income Tax With the Flat Tax Essay

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Did you know that an astonishing 43.4 percent of the people in America do not pay any income taxes" (McCullagh 1)? This is roughly 65.6 million people that aren't paying taxes and this is putting our economy and country at its breaking point. Our current tax system penalizes those that work and save money. People that pay no taxes still get to enjoy the benefits. The United States needs to look at which tax is fairer to the people and easier to administer by the government. Although some may disagree, the Flat Tax should replace the income tax to simplify and bring fairness to the system, increase income, and create jobs.
Currently, the United States has a federal income tax that is very difficult to understand, to comply with, and to regulate. The current federal income tax is an inclusive tax. This means that citizens are taxed a certain percentage of the total money they earn. Citizens are also taxed on monies made from investments and monies they 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. Those people against a flat tax say that these people with lower incomes will be the ones most affected by a flat tax system. However, under the Flat Tax system, "the threshold at which people start to pay the flat tax is set high enough to exclude low earners altogether" (Nguyen 1). Also, there are allowable deductions under our current income tax system that will not exist if the United States changes to a flat tax system. "Tax payers struggle to comply with tax laws so complicated that even the IRS cannot figure them out. IRS commissioner Douglas Schulman recently ...


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...tt. "Tax Day 2011 - We Need a Flat Tax More Than Ever," Fox News. 18 April 2011. 20 April 2011.
Moore, Stephen. "Replacing the Federal Income Tax," Cato Institute. 8 June 1995. 14 March 2011 .

McCullagh, Declan. "The Income Tax System is Broken," 15 April 2009. 3 March 2011.

Nguyen, Samuel. "The Practicalities of Flat Tax," Adam Smith Institute. 2005. 11 April 2011.

Tomlinson, Shelly-Ann R. "A Consumption Tax versus a Federal Income Tax in the United States," University of Georgia School of Law. 2007. 24 March 2011. .


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