Terry Mitchell

A Flatter Tax Is Better than No Tax Reform at All



Posted: Monday, January 31, 2011

by Terry Mitchell
http://commenterry.blogs.com

President Obama has urged Congress to begin working on reforming the federal tax system. In my opinion, true reform would come in the form of either replacing the income tax with a national sales tax or moving to a completely flat income tax which utilizes the same rate for all taxpayers and all forms of income. Obvious, neither of these will happen anytime in the near future.

However, I believe Congress can and should make the federal income tax a lot flatter by the end of this year. If that means eliminating most tax deductions, credits, exemptions, and loopholes, so be it, as long as tax rates are lowered. In addition, they should make sure that all income earners pay at least a little bit in taxes. They should also reduce the number of rates to no more than two or three.

I would suggest a rate of 6% for income up to $20,000, 12% for income ranging from $20,001 to $100,000, and 18% for all income over $100,000. At any rate (pun intended), a flatter tax such as this would be much better than no tax reform at all. Sticking with the status quo would be the worst of all possible options.
Terry Mitchell is a software engineer, freelance writer, amateur political analyst, and blogger from Virginia, USA. He posts a least one article a day to his blog - http://commenterry.blogs.com - on subjects such as current events, politics, technology, society and culture, religion, health and well-being, self improvement, personal finance, trivia, and sports. He is also the owner of a new privacy-enhanced search engine - http://www.SearchMost.com.

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Top-level comments on this article: (1 total)
» left by Jennifer Stewart
 1 year 110 days ago.
153 fans.
I agree with you. The simpler the taxation system the better. And fair is the operative word.
» left by Terry Mitchell 1 year 109 days ago.
93 fans.
Yes, Jennifer, I think most people would see a simpler and fairer tax system as a positive development.
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