es and decreases available jobs.Hurts U.S. companies less.SAVINGSDecreases savings.Increases savings.PRODUCTIVIY Decreases.IncreasesUnder this tax proposal, both individual taxpayers and businesses would enjoy benefits achieved by this alternative tax system. First of all, we would like to talk about the individual taxpayers benefits. This tax proposal would free savings and investments from double taxation. This mean that after an individual's income is taxed at a low, flat rate, and if they save it or invest it, the interest or dividends are not taxed again. Another benefit is that it ends the taxation of capital gains. Which means that when a person buys a home or small business and they decide to sell it, they would not have to pay any penalizing double taxation. It also would get rid of estate and gift taxes that represent double taxation and unfairly transfer income from families to the government. The flat tax would shorten the tax form to a post card size form. As we all know the forms that we have now are long and complicated, the new form would short and simple to understand. It would also reduce interest rates on home mortgages credit cards, and auto loans. How this works is that since interest is no longer taxable under this proposal, the rates would drop to reflect the tax-free status of interest. The next benefit is one that most working people would love. This tax system would stop the punishment of individuals and families who work longer and harder to improve their lives. With only one low tax rate, the government would no longer be able to take a large bite in people's income. It also means that a spouse's income would no longer push a family into a higher tax bracket. People would also be able to keep more of the money they earned and this tax proposal would end the government's current micro-management of how the way people act through the tax code. A flat rate would reduce the IRS's infringements on ...
