Topic > Flat Tax - 745

It takes the average American 13 hours to file taxes. Why? Because there are 7 tax rates, 4 standard deductions and at least a dozen tax credits for individuals. Then there are the exemption, the itemized deduction and the special tax rules. What a complicated mess. Wouldn't it be easier if we eliminated the 73,954 pages of loopholes and simply taxed everyone using the same percentage? The current federal income tax system is progressive, meaning the more you earn, the higher percentages of taxes you pay. But it's not that simple. For example, if you earn $100,000 and are in the 28% tax bracket. You would owe 10% of $8,925, 15% of $27,325 (the difference between the maximum and the threshold of the second tax bracket), 25% of $51,600, and 28% of $12,150 (the difference between income and the threshold of the third tax bracket). This calculation works out to $21,293, a tax rate of 21.2%. Having a flat tax would be very simple. No matter how much you earn, you would pay a fee for all of your income. A purely flat fax would eliminate deductions and credits to further speed up tax filing and payment. Texas Governor Rick Perry says, "Taxes would become so simple that taxpayers would be able to complete their returns in minutes and send them on a postcard." Taxes would also be much more transparent. Transparency is necessary so that taxpayers can easily understand the full extent of their tax burden. Together, simplicity and transparency have given greater confidence that taxpayers are not exploiting tax complexities to pay less tax or even no tax at all. Furthermore, this means that citizens would have a clearer understanding of what they are paying in exchange for the public services they receive... middle of paper... taxes would be much easier, and taxpayers would also be more willing to pay if see what they are paying for the government services they receive. Having a flat tax would be fair and would benefit everyone by ensuring that everyone helps cover the costs of government. Ultimately, it will also stimulate economic growth by ensuring better opportunities, wages and jobs for citizens in the future. Obviously having a flat tax would benefit everyone. Works Cited http://www.moneytalksnews.com/2014/02/11/a-flat-tax-the-good-the-bad-and-why-it-probably-wont-capita/ http://hubpages. com/hub/Flat-Tax-vs-Progressive-Tax-Pros-and-Cons-for-the-US http://blogs.wsj.com/wealth/2011/04/18 /the-rise-of-the -hints-high-income-no-taxes/?mod=e2twhttp://www.heritage.org/research/reports/2011/12/the-new-flat-tax-easy-come-uno-due-tre