A flat tax is a system in which a person’s income is not a factor and a single rate is set for all taxpayers. This kind of tax includes no deductions or exemptions. The United State’s current, progressive tax is very different from a flat tax, the most noticeable reason being that a progressive tax takes different percents of income depending on what income bracket a person falls into (Investopedia). During 2010 in the United States, “individuals who earned up to $8,375 fell into the 10% tax bracket, while individuals earning $373,650 or more fell into the 35% tax bracket” (Investopedia). When using a progressive tax, there are also a slew of deductions that people can take to lower their taxes, but a flat tax does not allow for any deductions; everyone has to pay the set rate (Irons). A flat tax is not a new idea, even in the United States, it has been proposed multiple times. Not long ago, Rick Perry and Newt Gingrich supported the flat tax during the 2012 Republican Presidential Campaign (Pethokoukis). In other places in the world it has become widely accepted and has already been implemented in over forty countries. The idea started in Hong Kong in 1947, but became more popular in the 1980’s and 90’s. “Among the first countries to adopt a flat tax system were Latvia, Lithuania, and Estonia, in 1994” (Lewis). Other small countries such as Mongolia, in 2007, and Seychelles, in 2010. Eventually even Russia, a country of monumental size, joined the flat tax movement in 2001 with a rate of 13% (Lewis). In the United States, A flat tax could make taxes much simpler by replacing all other income, payroll, and death taxes as well as many other excises while still bringing a good amount of money into the government and improving the ec...
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Pethokoukis, James. "Fix, Don't Flatten, the Tax Code." Nationalreview.com. National Review Online, 28 May 2013. Web. 19 May 2014. .
Phillips, Kerk. "A Flat Tax Is Not Incapable of Funding the Government and the Poor." DeseretNews.com. Deseret News, 19 Feb. 2013. Web. 19 May 2014. .
"Tax Brackets." Bankrate.com. Bankrate, n.d. Web. 18 May 2014. .
"What Are the Advantages and Disadvantages of Adopting a Flat Tax in the US? - Ask TaxGuru." Ask TaxGuru RSS. N.p., n.d. Web. 17 May 2014. .
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
The current tax policy in the United States is very confusing and it is very costly for our government to administer it. It is in the best interest of our country and its citizens to revise or replace our current tax policy. While most taxpayers agree that tax reform is necessary for our country the problem they encounter is the difficulty they experience when trying to understand all the political terms used when discussing tax reform. This paper is an attempt to help the taxpayers of our country
The United States government was created to uniformly protect and represent all of its states, as well as any and all constituents within those states. Among maintaining defense and running a free market economy, there are a myriad of other expenses the government embraces as the country grows. With increasing expenditures, politicians had to seek ways of financing the government. Federal taxes were levied as the American people proved to be the largest source of revenue for the government. The most
However, even with such contrast of Hofstede dimension scores between the United States and Singapore, there are some cultural, ethnic, social, and educational characteristics similarities that are mutually accepted. Education is clearly important, English is the language of business, and punctuality, etiquette and roles are equally significant. Of course, these cultural dimensions can only provide an idea of culture, because culture in itself is dynamic and forever evolving. Outside influences
Kazakhstan has concluded 43 double taxation treaties with different countries around the globe and one of them is the United States. Kazakhstan and the United Stated singed an income tax treaty and protocol on October 24, 1994. The parties initialed the proposed convention and protocol during the first half of 1993. Although similar to the U.S. - Russia income tax treaty, the new Kazakh accord contains some distinguishing features. Creditable taxes The new agreement applies to the Kazakh on profits
given by Hamilton in 1787 is the backbone of the FairTax Act. The FairTax or bill H.R. 25 is not a flat tax or a VAT tax. It is a tax on consumption. The FairTax is a twenty-three percent sales tax levied on all new goods and services. The FairTax replaces all current federal taxes imposed on the people of the United States. This includes all personal and corporate income taxes. The twenty-three percent tax is not imposed on old or used items. It is applied only to new items. The FairTax is levied on
Rick Perry In Section 1 of Article II of the United States Constitution, it is stated that the president is allowed to serve four years before the election process is once again re-initiated. Accordingly, every four years, new presidential candidates pop up in hopes of becoming the next President of the United States. 2012 is such a year, and one of the candidates was Rick Perry. It is interesting to note that when Rick Perry first entered the political scene, becoming elected to the Texas
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These notions have the potential to radically impact the way economic policy is executed in the United States because it can change policymakers’ understandings of how people act. One major area of influence behavioral economics has is changing how taxes are implemented and what objects are taxed. Taxation is essential for government survival and taxes have the power to create (allowing for the welfare state) and destroy (excessive taxes on alcohol and tobacco). This paper will focus on taxes’ ability
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of ratifying. During the convention, congress only needed one more state to ratify the Constitution in order for it be become law. Both New Hampshire and Virginia voted for ratification so the needed votes for ratification were in. Now the question was would New York join the union? The Anti-Federalist argued that ratification should depend on the adoption of amendments. But convention rules banned conditional acceptance. States could recommend that Congress consider additional amendments but it