Is A Flat Tax Really Better Than Our Current Progressive Tax System?

1398 Words May 26th, 2016 6 Pages
Is a flat tax really better than our current progressive tax system? It is currently being contemplated as an alternative solution to the ever-increasing tax debacle in the United States. With such a significant and potentially life-changing event on the rise, it is vital to address the concerns involved. If implemented, the flat tax system would cause a loss of revenue for the government, greatly reduce IRS jobs, and negatively impact the lower income families.
First, to understand the effects of a flat tax and how it compares with our current system, it is important to know what it is. “A flat tax is a tax system, which refers to a tax on household income, taxes at a uniform rate, regardless of income level” (Meehan, 2016). This means that every individual in the nation would pay the same rate regardless of what they earn. A progressive tax, on the other hand, is based on an individual’s income and when their income increases, so do their taxes (The Economic Times, 2016). Under this system, the rich pay more and the low-income earners pay less. At present, this has caused some very big issues including a widening gap in our social ladder and an uproar over where the majority of the country’s wealth resides. These problems are the reason that government officials are seeking out new options. However, the flat tax alternative is less progressive and for many reasons.
Even though the flat tax system is fair and all parties pay the same percentage, the impact that it will…

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