ipl-logo

Pros And Cons Of Flat Tax

595 Words3 Pages

The Pros and Cons of a Flat Tax

Wouldn 't it be great if filing your taxes would take only a few minutes? This may seem like a farfetched dream, but it could actually become a reality through the implementation of a flat tax. This is a tax system that applies the same tax rate to everyone regardless of their income. There are also no deductions or exemptions allowed. Supporters of this idea believe that it is a better system than the progressive tax system currently in place, where taxpayers are taxed according to their income bracket. But how is it more beneficial? And won 't it carry any negative effects on the economy and government revenue? Go through the advantages and disadvantages of a flat tax rate to gather supporting data before you decide on your stand.

List of The Pros of a Flat Tax

1. It makes …show more content…

4. It can help the economy grow. Advocates of the flat tax rate believe that people can be encouraged to work harder to earn more because they won 't be afraid of a larger tax penalty for a bigger income. In addition, more business will be more willing to invest. This can result to more stable economic growth and higher overall tax revenue.

List of Cons of a Flat Tax

1. It favors the wealthy.

Those who are earning bigger income can enjoy paying less tax, so they end up with more money, further widening the gap between the wealthy and poor.

2. It makes the poor even poorer.

In line with the point above, those in the lower class will be burdened even more, especially since there will be no more exemptions and deductions. This results in having less money to spend for necessities and paying debts, making their financial situation even worse.

3. It can shut down the IRS.

The internal revenue may be some people 's mortal enemy, but remember that a lot of people depend on their IRS jobs to make a living. Implementing a flat tax makes the taxation system simple and takes away the function of the bureau, ridding its employees of

Show More
Related

The Liberals Taxing Policies By Jamie Golombek

659 Words | 3 Pages

This gives the middle and lower class better access to benefits that are easily accessible to the wealthy such as money, health care that is not covered by the government, etc.. Although egalitarians believe in social and political equality in an ideal society, none have ever proposed that there should be absolutely no difference in income or wealth of the members of this society. In the same way liberals’ are not

Read More

Ao4 Government Response Paper

670 Words | 3 Pages

This encourages individuals to work and the more the individual earns the benefit gradually reduces. Additionally, another strength is that many individuals will benefit from a monthly payment, this may encourage individuals to learn to budget this payment to be able to calculate when bills are due and when to pay them without spending all their money at once and having no money left over for

Read More

George Washington's Debt Crisis

809 Words | 4 Pages

Like an investment, the government puts money into society, hoping to get a more substantial amount of money back. But with unemployment low the government is investing money into society and the investments are not paying off. The unemployed (7.8 million people) can’t or won’t pay and middle class doesn’t make an effective salary. If a significant amount of people are not working that means the government is missing out on vital income tax. And the middle class alone can’t fight off the $19.3 trillion dollars of debt.

Read More

Pros And Cons Of Minimum Wage In Virginia

1721 Words | 7 Pages

In addition to the benefit mentioned above that relates to small business, prices for services would be kept low. For example, if lower wage employees were paid at a higher rate, those costs would be passed to the consumer. A hamburger would cost $6.00 instead of two for $3.00. That is a pro for the employee but a con for the consumer.

Read More

Human Rights Problems In John Steinbeck's Of Mice And Men

531 Words | 3 Pages

Some people with be mad about getting taxed more and some people wouldn’t mind getting taxed more as long as it is doing something like helping someone that needs help or saving their lives. “About 800 000 people commit suicide every year… Mental disorders and harmful use of alcohol contribute to many suicides around the world. ”(www.who.int) The people I think that won’t like getting taxed the most are people like Lennie and George who are struggling with money as is

Read More

Explain How Taxes Affect The Government Economic Policy

491 Words | 2 Pages

Governments use different kinds of taxes and vary the tax rates. This is done to distribute the tax burden among individuals or classes of the population involved in taxable activities, such as business, or to redistribute resources between individuals or classes in the population. If this were to be implemented there would be improved living

Read More

Essay On Flat Tax

1766 Words | 8 Pages

In our current tax system, our government and politicians give out tax favors to large corporations. While forcing the working middle-class man and small businesses to pay. In order to fix this issue of corrupt government tax favors, a single flat tax

Read More

Income Inequality In America

968 Words | 4 Pages

One of the arguments used is that we could regulate and tax the 1% income because that would be “fair” but these numbers show how harmful that way of thinking is. 18% of taxes for the “bottom” of the bracket which is around 20% of the U.S population.

Read More

Persuasive Essay On Student Debt Crisis

1228 Words | 5 Pages

Another great benefit to this act is that even those students who end up getting a government job after college would end up paying their loans off within ten years and would eventually be forgiven if they exceeded the time. This act does not hurt the nation, in fact, it’s actually fixing it. As of today, this act hasn’t passed, but if it does, the solution to the student debt crisis would be solved; students would be relieved of financial stress and they would be given an opportunity to gain a better education and make the nation a better

Read More

Essay On Raising Federal Income Tax

980 Words | 4 Pages

Here’s the deal, the government is debating whether federal income tax rates in American should be raised or not. Raising federal income tax rates in America generates resources rapidly, offsets cost of lower families, and creates a savings income. Raising tax reduction on the American people will contribute towards

Read More

California Minimum Wage

1512 Words | 7 Pages

It will just be canceling out the changes. Another online article by Los Angeles Daily News, states that “To survive, more profitable businesses will have to reduce workers’ hours to a bare minimum, automate as many positions as possible and raise prices as high as the market will bear”. The only way for business people to live in these conditions is to raise their prices, but that will also mean that they will not make as many sales. Not as much sales, means that they won’t make as much

Read More

Argumentative Essay: The Federal Tax System

147 Words | 1 Pages

The federal tax system is plagued with issues: It doesn 't raise sufficient revenue to back government spending, it is unpredictable, it makes results that are unreasonable, and it impedes monetary productivity. This part examines a few approaches to enhance charges, including making an esteem included duty, expanding natural taxes, improving the corporate expense, treating low-and center pay workers evenhandedly and productively, and guaranteeing suitable tax collection of high-wage family units. A good tax system raises the incomes expected to fund government spending in a way that is as basic, evenhanded, and development well growth as could reasonably be expected. The United States does not have a good tax system.

Read More

Advantages And Disadvantages Of Deficit Spending

641 Words | 3 Pages

Here 's Why. Retrieved January 29, 2017, from https://www.thebalance.com/deficit-spending-causes-why-it-s-out-of-control-3306289 Greengarage. (2017, January 13). 6 Pros and Cons of Deficit Spending. Retrieved January 29, 2017, from http://greengarageblog.org/6-pros-and-cons-of-deficit-spending Investopedia.

Read More

Should Rich People Pay More Tax Essay

752 Words | 4 Pages

Do you ever think of why should or shouldn’t the rich people pay more tax than others? Nowadays, people are arguing about the fairness of paying more tax. Statistics have proven that the rich have paid the majority of U.S. income taxes. A person making $100,000 will pay a higher percentage of his income in taxes than a person making $20,000 for instance. According to the Congressional Budget Office, “The 10% of households with the highest incomes pay more than half of all federal taxes.

Read More

Argumentative Essay: Should Rich Pay Higher Taxes?

1212 Words | 5 Pages

But, taxing the rich more also wouldn’t be impartial that fair because the government already wastes much of the money pay they collect. Even though the wealthy have a higher income and can afford it, most of the wealthy worked hard to get where they are now. If we make the Making the rich pay higher taxes will have advantages and disadvantages as well.

Read More

More about Pros And Cons Of Flat Tax

Related Topics

Open Document