The Flat Tax System

In case, IRA proceeds and undertake the aspect of the flat tax rate in the future, every citizen regardless of his or her level of income, investment, wealth will feel the tax obligation at the same rate (Adelmann, 2011). For this case, a simplified flat tax rate has a greater significant in that it will accelerate and simplify the process as well as save money for the government regarding bureaucratic fees. In as much as the aspect of tax is concerned we get to note that the application of only a flat tax rate in the future will, therefore, be unfair.
In a sound economic system, it is normal that individuals who earn less pay tax at a lower rate as compared to those who more or high-income earners (Burkhauser et al., 2012). For this aspect to hold it is true that those who earn a high income as compared to those who earn low incomes over a given period will have accumulated more assets amongst other items hence they will be capable of taking care of themselves despite the high tax, they are expected to pay (Adelmann, 2011).
It is also noted that by implementing a flat tax rate, it will, therefore, broaden tax base as well as increasing the government’s tax revenue. Therefore, I do agree with the implementation of the flat tax rate will enlarge tax base (Burkhauser et al., 2012). However, I doubt to some extent if it will have an impact on the tax revenue of the government.
(2011). Fair Tax? Flat Tax? The Case for No Tax. Retrieved on March 31st, 2012. From:http://www.thenewamerican.com/usnews/politics/7681-fair-tax-flat-tax-the-case-for-no-tax
Burkhauser, R. V., Feng, S., Jenkins, S. P., & Larrimore, J. (2012). Recent trends in top income shares in the United States: reconciling estimates from March CPS and IRS tax return data. Review of Economics and Statistics, 94(2),