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    The Monsta

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    Andrew Woan
    The document discusses the flat tax system as an alternative to the current progressive tax system. It outlines some of the perceived advantages of a flat tax, such as simplicity, decreased tax fraud, and improved fairness. However, it also notes that the flat tax may not actually simplify the tax system that much and could result in lower tax revenues from wealthy individuals if the flat tax rate is too low. Ultimately, the document concludes that changing over 100 years of a progressive tax system to a flat tax would come with huge complications.

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    The Monsta

    Uploaded by

    Andrew Woan
    14 views4 pages
    The document discusses the flat tax system as an alternative to the current progressive tax system. It outlines some of the perceived advantages of a flat tax, such as simplicity, decreased tax fraud, and improved fairness. However, it also notes that the flat tax may not actually simplify the tax system that much and could result in lower tax revenues from wealthy individuals if the flat tax rate is too low. Ultimately, the document concludes that changing over 100 years of a progressive tax system to a flat tax would come with huge complications.

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    The document discusses the flat tax system as an alternative to the current progressive tax system. It outlines some of the perceived advantages of a flat tax, such as simplicity, decreased tax fraud, and improved fairness. However, it also notes that the flat tax may not actually simplify the tax system that much and could result in lower tax revenues from wealthy individuals if the flat tax rate is too low. Ultimately, the document concludes that changing over 100 years of a progressive tax system to a flat tax would come with huge complications.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    14 views4 pages

    The Monsta

    Uploaded by

    Andrew Woan
    The document discusses the flat tax system as an alternative to the current progressive tax system. It outlines some of the perceived advantages of a flat tax, such as simplicity, decreased tax fraud, and improved fairness. However, it also notes that the flat tax may not actually simplify the tax system that much and could result in lower tax revenues from wealthy individuals if the flat tax rate is too low. Ultimately, the document concludes that changing over 100 years of a progressive tax system to a flat tax would come with huge complications.

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    A Tax That Should Remain as a Door

    Mat: The Flat Tax


    APRIL 9, 2019

    By Andy Woan

    Above is a cartoon that basically explains why the flat tax doesn’t
    work.

    What is a Flat Tax?


    Many – predominately Republicans (though many independents
    and Democrats support it as well)– have considered a very simple
    alternative to the current progressive tax system: a flat tax. A flat
    tax system is one in which people are charged the same tax rate
    (%) of their income. There are several kinds of flat-taxes, from a
    marginal flat tax-rate to one with limited deductions. However, this
    post will only be discussing the simple flat tax on taxable incomes,
    with all else remaining the same.

    Advantages of The Flat Tax – Or Are They?


    To most people the word “simple” comes to mind when asked
    what they think of a flat tax and that is the primary reason most
    people support a flat tax. But that is not so easy to say. While the
    flat tax would make taxes easier, by how much? Determining
    taxable income with deductibles and tax credits and all the other
    things would remain in place. Not only that, other complicated
    parts of the federal income tax could remain unaffected, such as
    the “alternative minimum tax” and other more complicated
    sections.
    The flip side is another argument for the flat tax, being simpler
    would decrease tax fraud and should increase government tax
    revenues. While it’s proven to be true in certain countries, it is not
    in all countries. The flat tax is also a generally low one, so the
    middle class and lower income individuals do not get angry. While
    it might keep them happy, the wealthy pay a lot less money to the
    federal government if the flat tax rate is too low.
    A third argument for the flat tax would be improved fairness
    because everyone pays the same percent of their taxable income.
    Several studies have also shown that many different companies
    whom are given the same person’s file, end up with a different
    amount of tax to be paid to the IRS. This can create income
    inequality because the smartest people could change their taxes in
    a way so that they pay the least.
    Another theory is that the flat tax will increase consumption
    spending and investment and cause a “trickle-down” effect in the
    economy. Because of the boom, people would pay more taxes and
    so government revenues would also increase despite having a
    lower tax rate. While this worked for some countires, it has also
    not worked for others.
    Simply put, changing 100+ years of a progressive tax into a flat tax
    has huge complications.

    What do People Want?


    te

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