Flat tax will make everything easier to report and understand.Ĭountries that have adapted flat tax have experienced economic growth. This system would not be giving tax filers a difficult time, and those at the IRS would be introduced with easy computation. When a flat tax system is implemented, other forms of taxes will be eliminated and replaced with just a single rate for everyone. So, taxpayers can do away with paying dividends, interest and other business tax. Simply put, individuals and families will not be asked to submit dividend and interest reports, or that of other business-related income. With flat tax, a section of the tax code that is biased against capital formation will be removed, not to mention that capital gains tax, death tax, savings double taxation and dividends will be eliminated. Here are the pros and cons of flat tax: List of Pros of Flat Tax While there are many advocates for this system, there are also those that oppose such. In the US, this is implemented as a progressive tax system, which means that high-income earners would pay taxes at higher rates than low-income earners. By definition, a flat tax system refers to taxation on household income at a uniform rate regardless of the level of income level.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |