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Flat Tax

Essay by   •  February 20, 2011  •  Essay  •  455 Words (2 Pages)  •  1,195 Views

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I believe that a flat tax is a good idea. I can say this, but most people don't know what a flat tax is. So maybe you'll just say, "uh-huh" and think, "yeah, whatever". Because of that, I will start this essay by explaining what a flat tax is. Be patient; it won't take long because the Flat Tax system is very simple.

There would only be two tax forms: one for businesses and one for individuals. Each person would pay 17% of their total taxable income. Their taxable income would be calculated by the chart below.

1. Wages and salary and pensions

2. Personal allowance

(a) $22,700 for married filing jointly

(b) $11,350 for single

(c) $14,850 for single head of household

3. Number of dependants, not including spouse

4. Personal allowances for dependants (line 3 multiplied by ,300)

5. Total personal allowances (line 2 plus line 4)

6. Taxable wages (line 1 less line 5, if positive: otherwise zero)

7. Tax (17% of line 6)

8. Tax already paid

9. Tax due (line 7 less line 8, if positive)

10. Refund due (line 8 less line 7, if positive)

As you probably have already seen, this system of taxes would be less complicated than the current one. There would only be ten easy steps! It is good to have an uncomplicated tax code because if you make a mistake on your taxes, you have to pay and if the IRS makes a mistake you still have to pay. Daniel Pilla noted that when the IRS sends out correction notices, one half of them are wrong. Even if the mistake is ironed out, you still pay for the IRS mistake because your tax money goes to pay their wages while they are ironing it out. One person underpaid his taxes by one penny and was fined one-hunred fifteen dollars and twenty-seven cents for his mistake.

Some people argue that under a flat tax, the poor would pay an equal percentage as the rich: not true. For example, a family of four making thirty-five thousand dollars would pay two hundred and eighty-nine dollars in taxes under a flat tax. That

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