Point

1 – Flat tax would simplify the tax code.

2 – Flat tax would be more fair because everyone would pay the same tax rate regardless of income.

3 – Flat tax would increase revenue by increasing the tax base.

4 – Flat tax would stimulate economic growth by reducing the amount of taxes individuals or businesses pay on earned income or profits, freeing up
capitol to purchase goods, start or expand a business or make investments to grow the economy.

5 – Flat tax is more stable, less likely to be changed over time.

6 – Flat tax would make it easier for people to prepare their own taxes.

7 – There would be less need or no need for the IRS with a flat tax or fair tax system.

8 – Fair tax would be more fair because it’s based on consumption as only purchased goods/services are taxed instead of income.

Counter Point

1 – The progressive tax code, while more complex, benefits the greatest number of Americans by funding programs for the poor and middle class.

2 – Progressive tax code is more fair because those that earn more should pay more in proportion to what they make.

3 – The revenue lost by flat tax may or may not be recovered due to an enlarged tax base because businesses may or may not expand their work force.

A lower tax rate for businesses or corporations doesn’t necessarily translate into increased revenue by way of an enlarged tax base because the chief factor driving growth potential is supply and demand.

Demand is the determining factor for expansion. If there is weak or flat demand businesses or corporations are inclined to sit on capitol or invest else where until demand increases, therefore tax reduction should be based on domestic investment and expansion.

4 – While an argument can be made for this for individuals on the lower to mid-income scale, those on the higher income scale are likely to make those purchases anyway, and business-corporate investment/expansion being tied more to demand needs to be stimulated by tax incentives based on actual investment or expansion, since demand isn’t always strong.

5 – Is it good stability or bad stability?

6 – Increasingly it’s getting easier to prepare your own taxes with computer software and so forth.

7 – Likely there will always be a need for a tax collector. The point is does it work!

8 – It would be unfair because people with less means potentially consume more as a percentage of their income. Overall revenue for programs that benefit the poor, the middle class, the elderly and young would be cut.

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