Friday, May 11, 2012

A Flat Tax Rate

In my classmate’s blog, “A Simple and Flat Tax”, she goes into detail about how the United States should adopt a flat tax rate. While she makes many good points to argue her case and I agree with her that we do need a tax reform, I do not think the U.S. should use this system of taxation.

While the thought of not having to deal with a pain-in-the-butt tax return every year and despite the success other countries have had with using a flat tax rate, the distribution of wealth in the U.S. is too uneven for us to use it. I think it would be unfair for everyone to pay the same amount of money in taxes when only a select few hold most of the wealth in the country. The government also collects a lot of money from the taxes they get from the wealthy. If they didn’t get those taxes anymore, it would cut out a lot of the money the government collects and less money going out into the public for community programs and such.

 What would happen to the IRS if we used a flat tax rate also? Or the companies and individuals who make a living out of helping people complete their tax returns? Most likely they would become unneeded, forcing people out of jobs. We already have a need for more jobs here in the U.S. and this could just add to an already big problem. 

While I can see the benefits of using a flat tax rate system, I don’t think it is something that would benefit the middle and lower class here in the U.S.