What if I told you that you could do your taxes in a few minutes on a paper the size of a postcard? Right now the tax code is over 73,000 pages long! Doing your taxes involves Lawyers, accountants, other third parties and the fees that come with them. Don’t we all wish there was an easier way. Luckily for us there is, it’s called the flat tax system and it’s gaining traction worldwide.
WHAT IS THE FLAT TAX SYSTEM
The flat tax system says that all citizens should be taxes equally. That we should all be taxed the same percentage no matter what income we have. There are various forms to the flat tax system though. Some call for exemptions for the poorest citizens and others call for some deductions to remain (i.e. Charitable donations & Mortgage) and others are just a pure flat tax system with no exemptions and no deductions. Ideas for the tax rate range from as low as 9% to as high as 40%.
The tax system in place now is one of the most complex and confusing tax systems in the world. It takes 3rd party specialists, which cost added fees, to do them and even they can struggle to complete it. The flat tax system would eliminate all of that simplifying the tax code and letting you complete your taxes in a matter of minutes. Simplifying the tax code would also eliminate loopholes used by the richest Americans and double taxing of income as well as eliminate the use of the pesky IRS. The flat tax plan would also stimulate tremendous economic growth. Flat tax advocate. US senator, and republican presidential candidate Ted Cruz states in his website “Imagine 4.9 million new jobs. Instead of Obama’s income stagnation, imagine average wages rising 12.2 percent over the next decade. Capital investment rising 43.9 percent. And every income-level seeing double-digit increases in after-tax income. Imagine exports and manufacturing jobs booming. Our trade deficit falling as the tax bias against American made goods is eliminated.”. Economists also agree that the flat tax would stimulate the economy, create millions of new jobs and increase wages. This has been proven in Estonia, Latvia and Lithuania where the flat tax system has caused extreme economic growth. On top of all of this, with everyone paying the same tax rate, the flat tax system is the fairest way to go. We propose a flat tax rate of 15% with the child tax credit, mortgage deduction, and charitable donations deductions staying in place as well as the first $45,000 for a family of 4 being tax exempt.
Opponents to this tax say it’s not fair and let’s the rich off easy, but thats just not true. The flat tax plan puts an end to loopholes used by the rich to evade taxes and makes them pay their fair share. The tax also lessens the impact on the poor by making the first $45,000 tax free as well as making it easier to complete so they don’t get taken advantage of by the complex tax system we have today. The more you think about it the more it becomes clear that the flat tax system is the right tax system for America.