2/22/2024 0 Comments Flat tax system![]() ![]() That program consists of a public-private partnership of tax software companies that offers free services to certain taxpayers outside of the IRS website.Īdditionally, anyone can prepare and mail in their taxes for free, but the tax code is so complex that almost 50% of Americans use a tax prep company. Assuming that more commonly used deductions are eliminated, the tax burden could shift dramatically to the lower and middle classes.A Government Accountability Report in April 2022 found that 70% of taxpayers were eligible to use an existing free-file program but just 3% actually used the service. ![]() Tax rates range from 10% to 37%, depending on income. Shift tax burden to lower and middle classes: A flat tax system could greatly reduce taxes on the richest Americans.A flat tax could also eliminate altogether some taxes that wealthier individuals tend to pay, such as capital gains, dividends, and interest income taxes. The rate could end up being higher than is politically acceptable if a flat-rate tax system were to replace that revenue. ![]() Federal revenue totaled $1.52 trillion in the first four months of the fiscal year 2022, and more than two-thirds of that came from personal income taxes, including taxes on capital gains, dividends, and interest. Lost revenue: Revenue could be lost with a flat tax system, depending on just how high that flat tax rate is.Proponents argue that reducing the top income tax rate by moving to a lower flat tax rate encourages business investment and attracts high-income individuals, increasing overall tax revenue and economic stability. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |