Economic Policy and Taxation
current debates about ideas to revive the economy generally fall into alignment with either classical or Keynesian economic theory. Some suggest that growing U.S. debt is a strong incentive for tax reform.
(1) Should we have a flat tax? Why or why not?
What are the merits and risks of other tax-based reforms? Please
assess at least one additional reform. Examples include, but are not
limited to: a national sales tax, value added taxes (VAT), eliminating a
variety of deductions or credits.
should be at least 300 words in length
While a flat tax system could be an attractive regime, it fails to account for the potential impact it would have on the total amount of tax collected and on equality in the country. Using the current progressive regime, those at a higher income pay higher tax rates than those at lower income levels. Ultimately, the government ends up balancing the welfare for those in the lowest income brackets through the lower tax levels. However, with a flat tax rate, everyone would pay taxes at the same rates without discrimination, which could result in a reduced disposable income for low-income households. Additionally, the government would experience a reduction………..
APA 335 words