Tax Reform Essay

1569 Words May 18th, 2014 7 Pages
Tax Reform Racket

First and foremost let us begin by clarifying that we are by no means economists. However, we are United States taxpayers, and we know us as well as our neighbors are being robbed. For a better understanding of this let us look at a few areas that led to this. These areas include Article I section 8 of the U.S. Constitution, the U.S. Civil War, and the 16th Amendment. Article I section 8 of the U.S. Constitution authorizes the power, The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defense and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States. ("Constitution of the
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borders through tax write offs of all business expenses, which include moving production outside the U.S. ("Fact Check: Tax Break for Shipping Jobs Overseas? Well, Sort of") In addition to these breaks it also bares such a heavy tax rate on corporations it encourages companies to maintain profits outside the U.S. and to invest in foreign operations. ("Mercatus Center”) The current Tax System, instead of encouraging economic growth and increased revenue in America has only caused stagnated growth. One of the best ways to reverse and correct the damage of an outdated Tax System is through Tax Reform. Tax Reform has not been done since 1986 and has become a largely discussed topic in economics and public policy today. (Kent)
Through these discussions many different solutions have come to fruition. All of which have varying benefits and limited foreseeable consequences. Some of these ideas include the Hall & Rabushka Flat Tax, Fair Tax, and a Value Added Tax. The Hall & Rabushka Flat Tax proposal would create a flat standardized tax at 17%-19% on all income earned through wages, retirement distributions and unemployment above a certain point. However, capital gains, social security, interest and dividends would be tax exempt. This creates a larger tax base, but critics are skeptic if it can bring in enough revenue. (Gale) The Fair Tax proposal is a national sales tax of 29% on all purchases. Eliminating the need of corporate taxes, individual

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