Advantages Of Flat Tax

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1. Introduction: People talk about taxes, complain about it, and attempt to evade them. Businesses are affected by taxes, in how they organize their activities and in the incentives of investing. Generally, the tax structure has to be tailored considering the country's economic structure, its capacity to generate revenue from them, its public service needs, ability to collect them and a myriad of other factors. The main purpose of taxes is to create sufficient income to finance the government services to the public in a way that does not increase the inflation. The structure of tax system is related with the level of development, the need or want for public services, and the capacity to collect taxes. While mandatory to finance the public…show more content…
The flat tax does not require high-profile accountants that have to compute the taxes and when speaking of other forms of taxation these specific workers are not needed to help find gaps in the fiscal system. This form of taxation is more compatible than other forms and by being so the tax compliance costs are reduced. In overall the flat tax system may be called an easy form of taxation and because of this simplicity, it has diminutive cost generation for both the taxpayer and tax collector. 1.1.2 Weaknesses of the Flat Tax Regime This form of taxation can not be the ultimate form of taxation that would help humanity in creating a system that would carry on forever. While other tax regimes try to put the tax burden on the two extremities the rich or the poor, this taxation creates problems for the middle class. In other forms of the taxation, burden falls on the rich or the poor because of the rates that it might imply. The poor might pay more taxes in other regimes, but it never matches the surplus that the government cashes from the richest. Under this context, the expenses of the middle class are redistributed since it pays more taxes than in the other systems. Middle class being the driving force of the political life in a society usually, may create instability or even unrest in the status quo of a

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