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Great! But unlikely...Feb 26 '00 Write an essay on this topic.No, unfortunately the flat tax will never come to be here in the United States. Why? The IRS is why. The Internal Revenue Service employs thousands of people who process, file, and audit taxes (not to mention prosecuting violators). In a flat tax environment, there wouldn’t be as much need for complicated tax filing, or as many forms, sub-forms, and attachments. Your taxes could be computed with a simple multiplication (Taxable Income * Flat Tax Rate = Amount You Pay). Less paperwork requires fewer bodies to push it around. At a minimum, the flat tax would require a huge reduction in the IRS’s employee base. Just imagine how many fewer federal employee’s (both executive and legislative) we would need if we abolished our current cumbersome and overly complicated Tax Code. Also, flat tax proposals are usually accompanied by elimination of all deductions. This would mean the elimination of the tax deductibility of dependants, mortgage interest, business expenses, etc. Reduction or elimination of the mortgage interest rate deduction, could wreak havoc on our housing and real estate industries not to mention having huge affects on corporations in the Income Tax Preparation and Litigation industries. Suddenly, H&R Block wouldn’t have much to do without complicated deductions, rules, and calculations to guide tax payers through. I think the flat tax is great thing, I’d love to see it become a reality. It would greatly streamline the Federal payroll (saving the taxpayers money) and distribute individual tax burdens more fairly than our present system. Unfortunately many of the legislators, and lobbyists have a vested interest in keeping our "he who makes the most, pays the greatest percentage" system in place because it gets them reelected. Remember, senior citizens have some of the smallest incomes and vote more than any other group.  |
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