The Tax Rate Is Fair

2004 Words9 Pages
Although many Americans, who do not know what a flat tax rate is, think that the current tax rate is fair, let us look at two different situations and then reconsider. There is a man, John Waters, who is the CEO of a large company and he makes an average of $570,000 annually. Making this amount, John is forced to pay thirty-five percent of his income to the government in taxes, leaving him with $370,500 to support his family of five. With his remaining balance he would be eligible to be placed in the tax bracket under the one he’s in currently and reduce the percentage of his income that he is forced to pay in taxes. On the other hand, you have another gentleman, Josh Anderson, who is a common salesman for Coca Cola that makes $165,000 a…show more content…
In a flat-rate system, all are equal in the eyes of wealth and what they owe the government meaning that everyone no matter their occupation would pay the same percentage of their annual income in taxes, creating a fair and just system. Therefore, there should be a change in the way that the United States does taxes. It should be changed to a flat tax rate, with a negotiable percent set at the beginning of each election, verses the current taxing tactic of the tax brackets.
Even though the flat tax rate has not existed in the United States in a while, it has made a comeback, so to speak, over the last couple of years boosting the economies of many other countries. The Baltic countries of Estonia, Latvia, and Lithuania have had flat tax rates of twenty-four percent, twenty-five percent, and thirty-three percent in place since the early to mid 1990’s. Then on January 1st, 2001 a thirteen percent flat tax rate on personal income was placed into action in Russia, with Ukraine following their lead and imposing a thirteen percent tax rate on personal income in 2003. Later in 2007, “Slovakia introduced a seventeen percent tax rate for almost all of their taxes including corporate tax, personal income tax, and VAT. There have been many more countries that have followed in Russia’s footsteps but the United States has yet to place it into action. It has been
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