Preview

Adopting a Single Rate Flat Tax System

Better Essays
Open Document
Open Document
1436 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Adopting a Single Rate Flat Tax System
The U.S. Should Adopt a Single Rate Flat Tax System

The one topic that has continually been a major topic in the United States is the topic of taxes. It has been a key component of political campaigns at all levels since the political scene has been of interest to me. There are two major tax systems that are viable options in the U.S. today. There is the federal individual income tax system and a single rate flat tax system. The U.S. currently uses the federal individual income tax system. This type of tax system got its start in 1864 after the American Civil War (‘The New Income Tax,’ Dunbar). It was the second tax ever used by the U.S. and was the first tax used during a time of peace. The tax system has continually become more complicated over the years and has become what it is today. The single rate flat tax system is a proposal that has been pushed for several years, especially since the recent recession that has hampered the United States economy. The federal individual income tax system is such a complicated system, that millions of jobs in the financial sector specifically deal with taxes, not to mention a government agency that overlooks this system. The Internal Revenue Service (IRS), is the governing body for all issues dealing with taxes and the main focus of IRS agents is to search out those that try to defraud the system. The system is so complex that there are several loopholes to avoid or lower ones taxes or possibly, if one is lucky enough, escape with out paying a single tax dollar. The main argument against the federal individual income tax system is that the tax burden falls to the highest income brackets. In other terms, it means that those that produce more income are taxed at higher rates forcing them to pay more in taxes. “In 1979, 35 percent of taxpayers filing joint returns faced marginal rate brackets of 28 percent or higher, and 13 percent were in marginal rate brackets of 37 percent or higher (‘Why Not A True Flat



Bibliography: Browning, E.K., & Browning, J.M. (1985). Why not a true flat rate tax?. Cato Journal, 5(2), Retrieved from http://www.cato.org/pubs/journal/cj5n2/cj5n2-14.pdf Dunbar, C. (1984, October). The new income tax. The Quarterly Journal of Economics, Retrieved from http://www.jstor.org/stable/1883633. Gjokutaj, E. (n.d.). Flat tax vs. the current tax system. Ezine Articles, Retrieved from http://ezinearticles.com/?Flat-Tax-Vs-the-Current-Tax-System&id=3461633 Joint Committee on Taxation, (2008). Overview of the federal tax system as in effect for 2008 (JC-32-08). Washington, DC: Government Pringing Office. Retrieved from http://www.jct.gov/x-32-08.pdf Pascale, C. (2009, July 8). Four reasons for the flat tax [Web log message]. Retrieved from http://www.suite101.com/content/three-reasons-for-the-flat-tax-a130414

You May Also Find These Documents Helpful

  • Better Essays

    Cited: Smith, E., Harmelink, P., & Hasselback, J. (2014). CCH Federal Taxation: Comprehensive Topics 2015. [VitalSource Bookshelf version].…

    • 2389 Words
    • 9 Pages
    Better Essays
  • Good Essays

    ACC 202 WEEK 2 ASSIGNMENT

    • 828 Words
    • 4 Pages

    From as long as I could remember Taxes have always been apart of our daily lives. Taxes can often be a big burden for most, they can also be a help and used for many other functions. If it was not for taxation our roads, public buildings would be a complete mess. Our emergency services such as, law enforcement, EMT, and Fire/rescue thrive off of tax dollars, many of our healthcare offices also use tax payers money to stay open. The taxing process from distribution to collecting them has people on the fence with different point of views. In this paper I will be discussing the questions raised about taxation.…

    • 828 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Prior to World War I the United Stated had few taxes. The government was supported by internal taxes. The U.S. Supreme Court decided that the income tax was unconstitutional because it was…

    • 1314 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Burton, H., & Skipper, D. (2008). Ramifications of a Flat Tax--Shifting the Burden to the Middle Class. International Advances in Economic Research, 14(4), 460-72. Retrieved December 11, 2010, from the ProQuest database.…

    • 1187 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Federal Income Tax Syllabus

    • 4954 Words
    • 20 Pages

    We begin with a high-level overview of federal income tax – “the view from 40,000 feet,” so…

    • 4954 Words
    • 20 Pages
    Good Essays
  • Better Essays

    Heer, C. ‘Taxation as an Instrument of Social Control ', The American Journal of Sociology, Vol. 42, No. 4, January, 1937, pp. 484-492. Online (Stable URL):…

    • 1545 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    Opposition to the Fair Tax

    • 1745 Words
    • 7 Pages

    Pretty much everyone would agree that our current tax system is almost comically complicated, and that it is difficult if not impossible to accurately enforce. Despite evidence that the top 5% of earners pay about 60% of the income tax, many Americans readily believe that there are a myriad of ways the wealthy can take advantage of our byzantine tax system to pay less than their fair share. The widespread belief that our tax system is full of loopholes and caters to the special interest and the wealthy is a powerful driver for the immense public support for an overhaul of our current tax structure into a simpler and fairer method. Many tax reform methods have been proposed and fostered by this ravenous public appetite for a simpler and seemingly fairer tax method and the FairTax is the latest tax reform flavor of the month in terms of gathering attention and engendering support.…

    • 1745 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Money seems to be the root of the problems that surround us in our daily lives. Depending on how much we earn from employment that number is concentrated on our social class in society. However, regardless of our social class we all pay a form of federal tax. Federal tax is a tax levied by the United States Internal Revenue Service on yearly earnings of employees, corporations, trusts, and other legal entities. These taxes that are collected contribute to approximately 47 percent of the federal government’s revenue. This money subsidizes national defense and funds federal programs such as welfare and infrastructure. A percentage of our income is taxed according to the amount we earn; it varies from ten percent when making zero to 20,000 dollars to 30 percent when making 50,000 dollars and above. The controversy of eradicating federal income tax involves all American residents…

    • 628 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Time to time Republican politicians comes up with flat tax proposals which comprise of information on how flat rate tax would exclude the corporate income tax and the payroll tax. As Moore (2015), has stated if tax reform takes place flat rate tax would add 12 percent GDP to the United States…

    • 197 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Essay On Flat Tax

    • 507 Words
    • 3 Pages

    The national duty is growing in the united states and the government can't keep up with its continuous tax system. So, the government made a solution and switched to a flat tax system. A flat tax system is a plan that taxes everyone at the same rate. This switch would simplify the tax process and it would make taxes fair and even, and it would allow the government to reduce the United States national duty.…

    • 507 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The Flat Tax

    • 492 Words
    • 2 Pages

    Taxation has always been a major controversy. Just like any major corporation, the government is constantly looking to raise revenue. The easiest and fairest way to do this is by taxing the people. However, how the people will be taxed is always an issue.…

    • 492 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Prentice Hall's Federal Taxation 2007: Comprehensive, by Thomas R. Pope, Kenneth E. Anderson, and John L. Kramer, eds. Published by Prentice…

    • 968 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Currently Congress is debating on raising tax rates. There is a couple different views on how this will affect the economy and income from taxes. I will present both arguments to you for you to decide on which way you may lean, although my mind is already made up on the matter.…

    • 878 Words
    • 4 Pages
    Good Essays
  • Good Essays

    What is the most palpitating issue publicly discussed in the US now? Without doubt, it concerns US economy, its deteriorating position and the ways to cure it. Robert Reich, an American political economist and commentator, decided to put some skin in the game and published the article with unpretentious name “Why we must raise taxes on the rich”, where he suggests raising the tax on income of top earners as a catalyst of economic growth. Obviously, he misinterprets certain economic models, openly juggles with nicely sound stereotypes, and fails to investigate the roots of the economic problem.…

    • 1021 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Flat Tax A flat tax is a system that applies the same tax rate to every taxpayer regardless of income bracket. Typically, a flat tax applies the same tax rate to all taxpayers, with no deductions or exemptions allowed, but some politicians such as Ted Cruz and Rand Paul have proposed flat tax systems that keep certain deductions in place. Most flat tax systems or proposals do not tax income from dividends, distributions, capital gains and other investments. Supporters of a flat tax system propose that it gives taxpayers incentive to earn more because they are not penalized with a higher tax bracket. In addition, flat tax systems make filing easier.…

    • 1535 Words
    • 7 Pages
    Good Essays