The Pros And Cons Of Flat Tax In America

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“The only guarantees in life are death and taxes” (Smith 1). Is switching to a new kind of income tax a good idea? Is using flat tax the right move for the American people? Would lower income people suffer as much as higher income people with a different kind of taxation system? In today’s world money seems to be the center of gravity for many people. Unfortunately, many people have lower incomes and struggle to pay all of their taxes, while on the other hand, the rich are rumored to evade paying taxes. There are many controversial topics in the tax world including flat tax and the way the lower income people are treated with taxes. Before I discuss problems of today’s tax world, I will give a brief history of taxes in America. Our…show more content…
One advantage of the flat tax system would be the ability to cut double taxation. By doing this, the only tax would come from earned income. “In a flat tax system dividends, capital gains, and interest on savings will not be taxed” (Moreno 1). Investments should see a positive increase due to this. Another great pro to the system would be simplicity. This means that there would only be one payment and that would make all the work and stress that goes along with taxes would be gone because of straightforward payments, making the tax system easy to understand. Converting to a flat tax system would mean that everyone would give the same amount of percentage of their income for tax. This seems to be fair to most people. Flat tax is used across the world, so if the United States of America converted to a flat tax system we would be able to compete more evenly in the Global Market (Smith…show more content…
A flat tax system will basically penalize the lower income americans. Everyone has to buy the same amount of necessities as anyone else. So with the flat tax system stating everyone pays the same amount of income tax, after all the necessities are purchased, the lower income people will have a drastic amount of less money left over to pay their taxes. Basically this states that the rich will only get richer. Converting to a flat tax system would mean everybody would give an equal percentage of their annual income earned for taxes. Now as this seems fair, is it really though? People who have lower incomes would obviously have a lot less money left over after the flat tax was collected. Another disadvantage of flat tax would be the loss of jobs. The IRS would be hit hard considering their line of work would be gone if the United States shifted to a flat tax system (Gordon
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