Financial Reform

Flat Tax - Simplify the System

Flat tax proposals have a single rate that are usually less than 20 percent. This flat rate solves the problem of high marginal tax rates by reducing penalties against productive behavior, such as working for a living, investing, starting up a business and entrepreneurship. A flat tax proposal would eliminate provisions of the tax code that give preferential tax treatment to certain behaviors and activities. Getting rid of deductions, credits, exemptions, and other loopholes would also help solve the problem of complexity, allowing taxpayers to file their tax returns in a much simpler way and elliminating all the red tape. The flat tax would eliminate double taxation of income that is saved and invested. So, this would eliminate the death tax, capital gains tax, double taxation of saving, and double tax on dividends. By taxing income only once, a flat tax would not only easier to enforce by the U.S. government, it would be easier for the taxpayers to understand and lead to the creation of more jobs.

Tags

Voting

5 likes
Active
Idea No. 7360