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Essay / The American tax system: uniform or fair? - 672
The American tax system, uniform or fair? “No taxation without representation!” » American settlers sought a fair tax system and many say we are still trying to achieve that. Today, while we are all represented in government and we are all required to pay taxes, some still perceive the tax system as unfair, allowing special interests, loopholes, and taxation more or less based on income. Should the US tax system remain the same, where individuals' income is taxed based on what they earn, with loopholes and deductions? Should we consider a system that eliminates progressive income taxes, taxing everyone at an equal rate through the flat tax, or should taxes be collected through national consumption of retail products and the fair tax system? Our current system of taxation is a varying percentage rate. based on different income brackets. Many say this violates our constitutional rights due to unequal taxation. Multiple deductions, loopholes, special rates, and a complex system of regulations all characterize our federal income tax system, leading many to question why it is still used (Peters, 2013). The current system, although raising over $3 trillion, taxes income multiple times and includes taxation of estates, employment, savings, and investments (National Priorities Project, 2013). The system itself is complex with over 20,000 pages of regulations, requiring a massive filing system, set up and managed by an even larger IRS, requiring over $225 billion in compliance costs (Hall, 2001 ). One may be hard pressed to find any advantage in the current system, other than the fact that it provides the government with an enormous amount of funds, and has...... middle of paper ...... group or another. However, I think the flat rate would be the best alternative because it is the easiest to revert to the original if necessary while eliminating many of the concerns raised about our current system, such as equality, complexity and profitability. Works Cited Hall, A. (2001, August). The Flat Income Tax and the Fair Consumption Tax: A Comparison of Federal Tax Proposals. Retrieved from https://wilmu.blackboard.com/bbcswebdav/pid-4981484-dt-content-rid-14738969_1/courses/POL.326.DIS.B2T01.FA2013/FlatTaxFairTaxComparison.pdf Draft National Priorities. (2013). Federal Budget 101: Where the Money Comes From. Retrieved from the National Priorities Project: http://nationalpriorities.org/budget-basics/federal-budget-101/revenues/ Peters, BG (2013). American Public Policy (Vol. 9). Thousand Oaks, CA: CQ Press.