Flat tax rates pros and cons

Hopefully, such a compromise would allow Americans to enjoy the best features of both the flat tax and the current progressive system. Advantages of a Flat Tax. At over 75, pages, the U. In the long run, no tax plan, flat or progressive, can help the US until the government learns not to spend more than it takes in. They don't receive as much advantage from the elimination of income tax.

Many are concerned that a flat tax will significantly raise taxes on low-income taxpayers. The magazine has run at least seven articles since then, advocating a flat tax. Federal Flat Tax Rates. You would not call a low-rate tax on all transactions in an economy a flat tax, even though it had one, flat rate. Thanks for the comments, bankscottage.

Next came Russia, the biggest economy to have adopted this measure. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized. They also imagine a tax system with little or no deductions or credits. But is it really? Any money that people save and thus spend later will be taxed in the future when they spend it.

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What constitutes income, for example? Thanks again, Patrice. This is used to display charts and graphs on articles and the author center. In other words, everyone pays the same exact rate. Do you have a tech writing background? Unfortunately, there are too many people today who have become complacent, lazy, and feel entitled to these things. Compliance is difficult even for those who want to.
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Right now, the rich shoulder the vast majority of the expenses, so the rest of us barely notice an increase in the already out of control government spending. This question implies a definition of "work". Colby cites examples of economic and social incentives established through the tax system, including Registered Retirement Savings Plans, which provide a tax deduction upfront, and the ability for investment income to compound on a tax-deferred basis, as an incentive to save for retirement. Disadvantages of a Flat Tax System. A sales tax is impersonal while it can protect the poor, it fairly taxes the rest.
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Sign In Join. Jerry, you raise some excellent points. Interesting read. Photo Credits. With that , eliminate every other single deduction under the sun.
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The bottom line, our current system is broken. The government still needs a pail of water so the remaining four now have to give one quarter of a pail subsidizing him. I am not for switching to a flat tax. None have our best interest at heart. It shouldn't be that the more I work, the more productive I am, the more I pay in taxes for each dollar. It also looks like you take time to edit your writing because I never see any grammatical or punctuation errors something I can't say for a lot of writers here and elsewhere on the Internet.
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Interesting read. All of this, some say, is a sign that these nations failed to raise enough tax dollars due to their tax policies. Can anything be done to lessen this complexity? Non-consent will result in ComScore only processing obfuscated personal data. European Central Bank. Your Money. A common complaint about the American tax system is that it is too complex.
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Flat tax rates pros and cons:

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