Sunday, March 22, 2015

Where in the World is There a Flat Tax?


There are other countries around the world who have experimented with a flat tax system, some ending up have their economies grow.

Gregory Gethard  writes an article on investopedia.com, ttled “Should the U.S. Switch To A Flat Tax?”, which is a website for businessmen and women who are looking for information on investments and taxes.
  

Source: http://www.mirror.co.uk
“In 2004, ten Eastern European nations used a flat tax; Ukraine taxed its residents 13%, Georgia implemented a 12% tax and Lithuania taxed its residents 33%. But Ukraine, Lithuania and every other nation that instituted a flat tax saw their economies grow by approximately 8% in a single year, over double what was seen in the world's mature, industrialized economies.”
This passage shows how the flat tax has been helping the countries that it has been implemented in. The countries that implemented it have actually had their economies grow in a single year more than more matured and industrialized economies. If the flat tax works so well in those European countries, then why would it not work here. We should at least try it because it could end up benefitting us to a point that is better than the progressive tax. The United States is one of the most economically stable countries in the world. When European countries that are not as stable as you are grows more in a single year, it should be a hint that they are doing something right. We shouldn’t just ignore the whole idea and dismiss it as a terrible thing when we have never even tried before and it is improving other countries more than our tax is improving ours.



“The reason why the flat tax works, according to proponents, is that the system is incredibly simple. In many cases, it's not just individuals who enjoy the benefits of an easy-to-understand tax code; some nations grant flat taxes to businesses as an incentive to lure corporations and other employers. In addition, there's an inherent sense of fairness to the flat tax, as all people pay the same percentage of their income.”
I agree with this statement because I think that the flat tax is better because it is more simple and provides a lot of benefits. With tax season in the United States comes stress and a lot of time put into paper work. If the flat tax were to be implemented, it would take away the stress that comes with tax season. It would make the tax forms much easier and simpler to fill out than the progressive’s 2-5 hour long forms. Along with the easy-to-understand tax forms, it includes benefits that make taxes easier and also makes taxes fair and draw businesses to the United States. Implementing a flat tax would lure big corporations to locate in the United States rather than countries such as Mexico or Canada, allowing for more job opportunities for the people.  



What will implementing a flat tax do to the lower class?

What steps would the United States have to take in order to implement the Flat Tax?

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