The Flat Tax Essay

914 words - 4 pages

The Flat Tax

The “consumption tax” as a replacement for the income tax is at least a subject of noteworthy question and debate. It seems as though, the means in relation to the ends are not always justifiable, but when approached properly, can benefit all. To answer the question of whether a consumption tax should be applied, I examined both my morals and my ideas of capitalism and free enterprise in relation to democracy. Is it fair to establish a tax that rewards the already wealthy and pose a threat to the already shaky financial standing of the poor? No; but a system that rewards success is important. So what is the solution?

As an American, I am infused with the spirit of capitalism. While this is a wonderful thing, we must carefully draw the line between the tendency of capitalism towards over individualism and over extended tax burden. The burden to which I refer is of course, largely progressive taxes. With a tax system that is overly progressive (such as the present law system) we risk removing the incentive to invest in America’s companies and also remove money from the pockets of would be employers. As I examine the opposing idea of a regressive tax system, with which I am equally at odds, I find it to be morally repugnant to punish the poor simply for their lower economic standing. With the notion that income tax is going to tend towards the progressive side in the U.S., I feel that repealing such a liability may be beneficial for the American public as a whole.

Living in a democracy such as the United States we have the right to be taxed with representation and in common day practice, are choices are limited by what are elected officials opt to do. In other words, we are taxed for goods and services in the public sector that we may not take advantage of; if so, there is no reason that we should be liable for such expenses. Furthermore, we as citizens are all entitled to equal treatment under the law and by definition of our Constitution. In this respect, a flat tax would easily address our given concerns of equal treatment under the law. While the question of fairness to all concerned is large, many feel that the nod will eventually be given to the wealthy. In a true flat tax system, this is inevitable; however one that is equipped with contingencies could prove mutually beneficial for all classes.

Acknowledging my limited understanding of the many facets of the tax codes and after some...

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