Our Tax System Needs Changing
Our current tax system is complex, costly, and unfair. Surely, America can do better for our children than redistribution and regulation. Our nation is over four trillion dollars in debt. It is time to act instead of letting lawyers and politicians play with our money. A flat tax plan is a simple solution to remedy the stagnant apathy our nation has been so accustomed to for the last seventy years. A flat tax would make calculating and collecting tax simple. According to 1996 studies, Americans devote 5.4 billion dollars a year to Federal Tax related paperwork. The IRS estimates that that it takes about 27 hours for the average family to keep records and prepare an itemized form 1040 with a few schedules. With the Armey-Shelby flat tax plan, everyone well above the poverty line will pay seventeen percent of your income. No credits or exemptions unless you have dependants and no taxes on saving or investments. The tax form will be the size of a postcard. An argument forJoint JoinJoint EcJoint EcThe Heritage FoundationA FLAT TAX FOR THE U.S.: THE ADVANTAGES AND
7 percent for developing countries as a whole. (Foster) The study by Texas Citizens for a Sound Economy Foundation found that the flat tax would "dramatically" reduce compliance costs. " (McIntyre, A35) The reasoning opponents use to claim the new tax system would only benefit the rich lies in the new tax breakdown. The cost of complying with tax rules and regulations would be reduced tremendously for both individuals and government. The specific tax rate that would result in revenue neutrality would depend on the size and number of allowances (deductions) permitted, creating a direct tradeoff between deductions and the tax rate. These alternate plans vary little from the proposal by Dick Armey and Richard Shelby. However, Uncle Sam would not demand a disproportionately larger, punitive share of your income as you earn more. Among the immediate, direct effects of implementing a flat tax: Since all income would be taxed, there would be no loopholes for the rich, and a person with 10 times the income of another would pay a tax at least 10 times as high. Economies of developing countries with a flat personal income tax grew at an average rate of 2. Source: Editorial, "An 'Untested' Flat Tax," Wall Street Journal, February 9, 1996. Spurs new investment and increased productivity by quickly freeing up capital needed in fast growing businesses through immediate expensing.
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