Fair Tax, Flat Tax and Progressive Tax:
Which Would You Choose?
Principles of Taxation
Fair Tax, Flat Tax, and Progressive Tax: Which Would You Choose?
As Tax Paying Americans, Tax Plans are a very important concept in our lives. Do you feel that there is a better option out there? In this paper we will discuss the differences between the Fair Tax Plan, Flat Tax Plan and the Progressive Tax Plans. We will discuss the Pros and Cons of each plan. What is the best option out there and is there any other version that could be more acceptable? There are many proposals that have been offered in recent years, it is important to do a thorough review of all plans in order to make an educated decision on which is the better option. According to Karen Walby, The federal income tax was established in 1913. It actually required an amendment to the United States Constitution to make it legal. Why? Our Founding Fathers believed that taxing individuals on their private income was economic folly. They were right. The absence of an income tax, a tax on productivity, allowed our economy to grow and individuals to prosper for 124 years. The original income tax legislation affected only individuals earning $4,000 or more per year, at a time when the overwhelming majority of Americans earned far less. The 16th Amendment was eventually ratified and added to the Constitution, and a national income tax was born. (Karen Walby, Ph.D., 2008) Since then, the federal income tax system has become so complex that it requires tens of millions of Americans to seek professional help to comply with it, not to mention the enormous, expensive federal bureaucracy required to enforce and administer the tax. The Internal Revenue Service employs more investigative agents than the FBI and the CIA combined, and with 144,000 employees, employs more people than all but the 36 largest corporations in the United States. (Karen Walby,... [continues]
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"Fair, Flat and Progressive Tax." StudyMode.com. 08, 2012. Accessed 08, 2012. http://www.studymode.com/essays/Fair-Flat-And-Progressive-Tax-1070344.html.