Data Bases • Custom Term Papers • Free Term Papers • Free Research Papers • Free Essays • Free Book Reports • Plagiarism? Links • Top 100 Term Paper Sites • Top 25 Essay Sites • Top 50 Essay Sites • Search 97,000 Papers @ DirectEssays.com • Search 101,000 Papers @ ExampleEssays.com • Search 90,000 Papers @ MegaEssays.com Free Essays • Term Paper Sites • Chuck III's Free Essays • Free College Essays • TermPaperSites.com • My Term Papers • Get Free Essays • Essay World • Planet Papers	Search Lots of Essays Back to Subjects - Economics the flat tax the flat tax The “consumption tax” as a replacement for the income tax is at least a subject of noteworthy question and debate. It seems as though, the means in relation to the ends are not always justifiable, but when approached properly, can benefit all. To answer the question of whether a consumption tax should be applied, I examined both my morals and my ideas of capitalism and free enterprise in relation to democracy. Is it fair to establish a tax that rewards the already wealthy and pose a threat to the already shaky financial standing of the poor? No; but a system that rewards success is important. So what is the solution? As an American, I am infused with the spirit of capitalism. While this is a wonderful thing, we must carefully draw the line between the tendency of capitalism towards over individualism and over extended tax burden. The burden to which I refer is of course, largely progressive taxes. With a tax system that is overly progressive (such as the present law system) we risk removing the incentive to invest in America’s companies and also remove money from the pockets of would be employers. As I examine the opposing idea of a regressive tax system, with which I am equally at odds, I find it to be morally repugnant to punish the poor simply for their lower economic standing. With the notion that income tax is going to tend towards the progressive side in the U.S., I feel that repealing such a liability may be beneficial for the American public as a whole. Living in a democracy such as the United States we have the right to be taxed with representation and in common day practice, are choices are limited by what are elected officials opt to do. In other words, we are taxed for goods and services in the public sector that we may not take advantage of; if so, there is no reason that we should be liable for such expenses. Furthermore, we as citizens are all entitled to equal treatment under the law and by definition of our Constitution. In this respect, a flat tax would easily address our given concerns of equal treatment under the law. While the question of fairness to all concerned is large, many feel that the nod will eventually be given to the wealthy. In a true flat tax system, this is inevitable; however one that is equipped with contingencies could prove mutually beneficial for all classes. Acknowledging my limited understanding of the many facets of the tax codes and after some scrutiny, I found that a consumption tax, in the form of a flat retail sales tax to be an equitable solution. The beauty of America is the freedom of choice at every turn. Just as I believe that we have the right to succeed if we want, I feel that within the legal limits, we have the right to consume what we want. If a flat retail tax could be designed so that an array of bare necessities are available to people untaxed. Those who cannot afford the tax will have every opportunity to avoid the tax. Others who wish to partake in the consumption of more luxury-oriented items will pay the tax per the flat tax percentage rate. Should certain individuals wish to provide themselves with a tax cut, they need only confine themselves to less extravagant purchases. Not only will American benefit from a better long-term growth rate as a result of more available capital for investment, but also the system is simple and transparent. Also, this plan would reduce disincentive and bias against investment. This idea would not only give economy a shot in the arm, but would also eliminate the possibilities of double taxation and the simplicity would prove to instill more public trust in governmental operations. As the high level of transparency and simplicity lends itself to an easy and economical system transition, the government should be minimally impacted by switch over costs. In addition, the transparency gives this system a certain level of security where by tax evasion is virtually impossible. Due to the self policing nature of the system, the IRS would even be able to avoid hiring the 4000 new staff members that it requires for the servicing (or auditing) of U.S. taxpayers; not to mention the new computers and system updates that are required for the current system. This should prevent the expenditure of millions of dollars (info. obtained from the White House website under the federal budget). The implementation of a flat retail tax system would be beneficial to all concerned and will ease the growing separation between the wealthy and poor as the capacity of the average citizen to save resources should be greatly increased, which will in turn generate capital for investment into the economy. If a flat tax system were realized, it would prove to be a constructive benefit to the United States taxpayer. The burden would be fair, transparent, and easily adaptable. America should explore the consumption tax. Bibliography: Word Count: 848
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