Tax incidence

definition, a flat tax is a single tax that is applied to an entire base regardless of income. The idea of a flat tax seems ideal, yet it is too simple. Steve Forbes’ book, Flat Tax Revolution, holds nothing back when describing the current federal income tax code. He refers to the current system as appallingly, confusing and complex. According to Forbes (2014), “The federal tax code is beyond redemption. We should kill it and institute a flat tax.” The United States uses a progressive-rate tax…

The topic of tax policy includes many widespread views and ideas. A relevant question is whether high-income earners should be required to pay a larger percentage of their income in federal taxes than low-income earners. The position I take is that everyone should pay a flat tax rate and can, if desired, choose to pay a larger percentage in federal income tax. Taxes are set so that the government can invest the money into services that everyone has the same access to. As a strong believer in…

At the end of the paper, the two authors conclude that “As the pace of change continues unabated, it is inevitable and advantageous that reports into tax design are founded on fundamental tax design principles. In the interests of common understanding and consistency, it is useful to have a set of principles such as those of Adam Smith that are widely applied. At the same time and in light of modern business practices including the ongoing development of electronic commerce it is suggested that…

flat tax or flat to the graduated tax? The graduated tax system, also known as the progressive tax system of the United States of America, has been in place since the time Abraham Lincoln. Many people disagree with each other that the progress tax system is unfair because tax rates create more of a task on lower income wage earners. Reform is being considered, one plan is the flat tax, which states everyone will pay the same tax rate. Flat tax is better than the graduated tax because a flat tax…

Christopher Bullock famously said “Tis impossible to be sure of anything but Death and Taxes”. Recent advances in genetic engineering or genology promises us of immortality by slowing down the process of ageing. Today we cannot be sure that death will be inevitable in the future. The situation with respect to taxes is exactly the opposite. After all why do we pay taxes? The justification for taxation varied at different points of time. In ancient times, taxes were collected for funding war…

health care coverage for approximately 96% of its entire population. France spends roughly 11 percent of its GDP on health care. As Italy 's healthcare system is highly decentralized and financed through regional and national taxation (consumptions tax), the system is fragmented. That is, the taxed participants, geographically based would likely generate more revenue in high-income communities than in low-income areas. In Italy, each region has autonomy over their budgets and is held liable for…

Recent election campaigns promoted various types of the tax credits toward specific groups of taxpayers like tax credits for service club members proposed by Stephen Harper 's Conservative Party and tax credits targeted towards school teachers of up to 15% of one thousand dollar annual expenditure out of their own pocket for buying classroom supplies proposed by Justin Trudeau 's Liberal Party. Harper believes that "citizens, not bureaucrats, know best how to invest in their own communities".…

what they actually pay. Patricia Cohen, a writer for the New York Times writes that despite the top tax bracket being 39.6%, the top 0.1% earners pay only 25% in taxes on average (Cohen). There are a variety of loopholes that people who can afford the best attorneys and financial consultants are able to utilize; however, the most common method is the exploitation of the capital gains laws. The tax rate for capital gains and dividends (which is money made from investments and property) is a…

I have a few specific lyrics that I relate to more than others. The first sets comes at the end of the song. “For they passed a noble law and the trees are all kept equal by hatchet, axe, and saw” –Rush. When I hear these lyrics I think of the tax incidence and the elasticity of an item. The second sets of lyrics are from throughout the song. “For the…

Change, 2015) This act helped millions of dependent Americans become independent from the government and taught them how to provide for themselves and their family through hard work. Another change that Clinton made was the increase to the earned income tax credit (EITC) the text book expresses that this program helped supply families of three or more with an income of $49,078 or less with extra financial support after they filed their income taxes at the end of each year. The welfare reforms…