Alternatives to the Income Tax System

Alternatives to the Income appraise System Most people hate filing their taxes and phone the touchable governance for collecting taxes is unfair and wonder if the system can ever be fixed without causing both more confusion than there already is. Every year before Congress, proposals are introduced to fix or replace the current tax system. There are alternatives to the current system that would by rights align the tax liability among the different income levels and simplify or abolish the current filing system. Among these alternatives are the Flat Tax and the Fair Tax. When Steve Forbes ran for president in 1996 he brought with him his plan for an make pass of the current U.S. tax system. fit to Forbes, his alternative to the current progressive, except arcane and inefficient system of income taxation was to enact a 17% flat tax on all pull in income. Unearned income, i.e. capital gains on the sale of stocks or real estate, pensions, inheritance, and all manner of bank-based investment vehicles like certificates of deposit and savings accounts, would be exempt. As part of his plan, the first $33,000 of earned income would be exempt from taxation. For example, someone who has an earned income of $70,000 would compensation $6,290 in national income taxes, or 8.9% when expressed in an rough-and-ready percentage.

When Forbes ran for the office once again in 2000 his plan was still for a flat tax, except this time instead of a simple exemption of $33,000, for each one adult would get a $13,000 deduction, with each dependent getting a $5,000 deduction. A family of two adults and two dependents making $70,000 would pay $5,780 in federal income taxes, or 8.3% when expressed as an effective percentage. With his reforms he advocated the complete repeal of the 16th Amendment. According to Forbes, Americans elapse 7.6 billion hours a year complying with the current tax code. According to the Tax Foundation, in 2002 U.S. citizens spent approximately $194 billion on tax code compliance, which amounts to 20... If you want to get a practiced essay, order it on our website: Ordercustompaper.com

Ordercustompaper.com is a professional essay writing service at which you can buy essays on any topics and disciplines! All custom essays are written by professional writers!