Get rid of the IRS with a Flat Tax on all goods. There can be a luxury tax on items that typically only the top wage earners can afford. The more you spend, the more you pay. There is no getting around it. A 12-15% rate would be good with 20% on luxury items. People should be able to keep what they earn. This could also be offset & maybe less with the tariffs President Trump is proposing. The IRS is corrupt & another overblown government bureaucracy that has lost its purpose. A flat tax system has several advantages:
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Simplicity
• A flat tax is straightforward to understand and administer, reducing the complexity of tax filings. Taxpayers can easily calculate their taxes, as it involves a single rate without the need for multiple tax brackets, deductions, or credits.
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Efficiency
• With fewer deductions and exemptions, a flat tax reduces the administrative burden on both taxpayers and tax authorities. This can lower compliance costs and reduce the need for extensive tax preparation services.
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Transparency
• A flat tax system is clear and transparent, making it easier for taxpayers to see exactly what they owe. This transparency can increase trust in the tax system, as people can more readily see that everyone is taxed at the same rate.
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Incentives for Earning and Investing
• By applying a uniform tax rate, a flat tax may reduce disincentives for additional work or investment, as higher earnings do not push individuals into higher tax brackets. This can encourage productivity and economic growth.
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Reduced Tax Avoidance and Evasion
• With fewer deductions and exemptions, a flat tax system may reduce loopholes that individuals and businesses can exploit to avoid or evade taxes. This could potentially lead to a more equitable distribution of the tax burden.
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Potential for Economic Growth
• Proponents argue that a flat tax can spur economic growth by promoting a more favorable environment for businesses and high-income individuals. The predictability of a flat tax rate may also make a country more attractive to foreign investors.
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Greater Focus on Tax Base
• In a flat tax system, the emphasis is on expanding the tax base (i.e., the total amount of income subject to tax) rather than on progressive tax rates. This can simplify the system further and potentially bring in more revenue from a broader population.