![]() Many who now hire professionals like accountants and attorneys could do without them because of the ease of reporting. Calculations should be much easier for taxpayers. A single rate would make life easier for the Internal Revenue Service (IRS). Proponents point out a number of benefits of a flat tax: This is a significant difference from a graduated tax system, which taxes passive income like dividends, stock sale profits and interest on savings accounts. One often-mentioned option assesses a flat rate of tax only on earned income. Several states currently use flat tax systems.Ĭritics of graduated taxes have suggested several types of flat tax systems. ![]() One reason for this is that the steadily increasing Internal Revenue Code has morphed to more than 3 million words.Ī system with a flat income tax assesses a uniform rate on everyone, regardless of the taxpayer’s income level. Under the current system, a taxpayer needs an average of 26.5 hours to prepare an annual return. In addition to citing fairness issues, many who advocate tax changes point to a frustrating level of complication when reporting taxes. The current tax system has six graduated rates that range from 10 to 35 percent. Those with the highest incomes are responsible for the highest tax percentage and assessments of the fairness of this system vary. This type of income tax goes up in steps. A lot of debate centers on whether the nation should have a flat or a graduated income tax. With every round of Congressional budget talks, one topic that generates heated discussion is income taxes. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |