The Flat Tax
The United States tax system is in complete disarray. Republicans and Democrats agree that the current tax code is complex, unfair, and costly. The income tax system is so complex; the IRS publishes 480 tax forms and 280 forms to explain the 480 forms (Armey 1). The main reason the tax system is so complex is because of the special preferences such as deductions and tax credits. Complexity in the current tax system forces Americans to spend 5.4 billion hours complying with the tax code, which is more time than it takes to manufacture every car, truck and van produced in the United States (Armey 1). Time is not the only thing that is lost with the current tax system; Americans also lose great deal of money complying with the tax code. Resources that are currently wasted on record keeping, filing forms, learning the tax code, litigation, and tax avoidance. The cost of complying with the current tax code totals about $200 billion annually, or $700 for every man, woman, and child in America (Armey 1). The overwhelming consensus that the current tax system is inadequate has ignited the search for tax reform. There are numerous proposals for tax reform; one particular proposal brought forth by various conservatives is the idea
Kenneth Blackwell, John Fund, Steve Forbes. The Armey/Shelby flat tax, based on the Hall/Rabushka flat tax would replace the current personal and corporate income tax with a simple 17 percent tax on all income. (1) Business Taxes and the Flat Tax. There is no doubt among Americans and politicians that there is need for tax reform, the flat tax and one of its proposals could possibly be the answer to tax reform. The taxation of business at every level makes sure that every part of the economy is taxed. Both businesses and individuals would fill out simple post card sized returns (Mitchell 3, 3).
Common topics in this essay:
Tax Foundation,
Treasury Department,
Pat Buchanan,
Rep Armey's,
America Armey,
Stanford University,
Buchanan Armey/Shelby,
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Republicans Democrats,
Rep Armey,
Committee Taxation,
1999 available,
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mitchell 1,
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on-line internet,
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1996 on-line internet,
sept 1999 available,
21 sept 1999,
internet 21 sept,
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Acceptance Essays
