Pros: In regards to a flat tax, all incomes are taxed at the exact same rate. You’re probably thinking, well wait a minute, what about the lower income tax payers? Won’t they have to pay way more in taxes from their income in this kind of system? Surprisingly, there are extreme benefits of the flat tax towards the lower class. “Since most people in low income brackets would pay much higher taxes under a 17% rate then they do now, flat tax plans usually exempt lower incomes entirely.” Also, in a flat tax only a person’s wage would be taxed and very little deductions would be allowed. Another pro to the flat tax is that it is incredibly simple. All of the complex loopholes in our current tax code would be taken away along with the seven million words that it consists of. Lastly, higher income tax payers would not have the opportunity to get away with cheating on their taxes through loopholes their professional accountants are able to find.
Cons: On the other hand, there are a great deal of politicians/regular everyday people that believe the flat tax would actually have a negative affect on low income families and it would greatly benefit the rich, even more so then our current tax system. This is because with a flat tax income is all that is taxed. Unfortunately, this would mean that because higher earning taxpayers are paid through benefits and savings, they would come out of tax season having paid nothing. On the other hand, low in come workers would still have to pay the percentage off their paycheck because they are actually getting paid directly for their labor. “And why should the manager of a billion dollar hedge fund get her 20% piece of the profits tax free while the people who deliver sandwiches to her have to pay tax on their salary and tips?”
I do not support the flat tax because of the unfair financial burden it would place on the benefit less lower income tax payers by taxing only their income received through labor.
Progressive Tax
Pros: In a Progressive tax system, taxes are income based. This means that a person with a low income will pay a lot less than a person who with a high one. “The tax cuts did, however, provide a large amount in credits, deductions and tax breaks for the lowest-income earners.” This in itself is a benefit to the economy because it distributes wealth in an effective way. Also, this means that if a tragedy were to strike or the economy goes in to a recession causing incomes to drop, taxes would drop as well.
Cons: The negative aspect of the progressive tax system is the fact that it is commonly considered unfair for the wealthy. This makes sense though because for all of the hard work that these people most likely put in to making their money, they don’t end up getting much out of it due to heavy taxes. Also, this discourages a lot of Americans from pursuing high paying careers because they know that the majority of their potential income will be taken away. “Opponents of the current U.S. income tax code argue that it discourages economic growth by unduly burdening high-income earners.”
I do not support progressive tax because it discourages Americans from working hard to make more money due to the unfair tax burden placed upon the wealthy.
Pros: Right off the bat, a positive aspect of national sales tax is that it is fair and supported by a great deal of people. This system would flat out make life a whole lot easier and would save Americans from reading the enormous tax code. Under sales tax, everyone would understand what and why they were paying, and there would not be any forms to fill out. Also, the government would receive more money in tax. Nobody would be able to get away with not paying their taxes and this would have a positive effect on our countries economy.
Cons: The biggest concern with the national sales tax is that it will place a heavier burden on our nations lower income citizens. There are a lot of people out there that spend every penny they have on food. “That is because most Americans must spend most or all of their yearly incomes just to make ends meet, whereas wealthier people need spend only part of their incomes, and can save the rest. Adding a sales tax would cause these individuals to pay a higher percentage of their income on taxes through their consumptions. This would create a negative chain effect because, one’s products become more expensive, the consumers will not have as much of a demand for them, and eventually our whole economy would go down the drain.
I support National Sales tax because of it's simplicity, fairness, and the fact that this system would have an overall positive effect on the economy.
VAT Tax
Pros: A VAT tax is basically a goods and services tax, this means that value is added to the product/service as it is bought and sold. This is an extremely simple and fair system because the people are taxed not on what they earn, but on what they consume. In recent years, VAT has been Also, the tax rate is the same on everything and there is much more compliance because a business must usually collect VAT on what it sells.
Cons: The VAT tax is a regressive tax. This means that it has the potential to greatly benefit the wealthier tax payers, and hurt the lower income tax payers over time. "The lower a person's income, the greater that proportion of that income goes into products and services". Also, the VAT does not generate an incredible amount of revenue for the government to be able to spend, mostly because of the amount that they have to pay to insure that everyone is paying this tax in the first place! This often means that those who do pay their taxes, have to pay more to make up for the cheaters. Lastly, the VAT tax is complicated and it would take a lot of time to make the transition from our current taxing system.
I do not support the VAT tax because of the cost it requires for enforcement, the overall burden it places on the poor, and the fact that it does not generate much money for the government.
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