Taxes, the one word that can spark heated discussion among friends, enemy’s and politicians. The United States tax system is so complicated that even our own government has trouble deciphering all the legal codes and laws. Does our tax system need a major overhaul?
A flat rate tax has been mentioned and discussed several times throughout our nations history. There are many proponents and opponents to the flat tax system, both sides having very valid and logical arguments. Would a flat tax system benefit our Nation and is the flat tax system fair to everyone?
Basically a flat tax would ensure that everyone pays the same percentage of taxes on their income. Lets say the rate is 25% someone who makes $20,000 would pay $5,000 in taxes and someone who made $200,000 would pay $50,000. Most flat tax systems allow no or very few exemptions making tax time and tax returns very simple.
I think a perfect system would allow a flat percentage charged to everyone, with very few deductions. These deductions would include children, mortgage interest and charitable contributions (which should be very documented).
Even though I’m not upper class, financially speaking, I don’t think it’s fair to place more of the tax burden on the upper class. Why should the wealthy be penalized for being successful in life. I would hope this new tax system would encourage the wealthy to donate more money to charity and help those who are less fortunate, but I don’t think they should be penalized.
Currently the US Revenue Code is over 9 million words long and contains many loopholes, deductions, and exemptions. Â A flat tax system would help eliminate millions of dollars that slide through the cracks every year. It would save the IRS millions of dollars and thousands of man hours.
No matter what tax system we use there will be pros and cons. There will also be thousands of supporters and just as many protesters. I personally don’t know if we “need” a tax system overhaul, but I think things can be done more efficiently