The Tax Reform Act Of 1986

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The main topic of this research paper is taxation. Seeing that this topic is pretty open, I’ve chosen to write about the proposed idea of Fair Tax. Along with a little bit of insight on Fair Tax and a couple highlights of history, I’ll try and explain some pros and cons as well as give my opinion on the topic. According to “Taxation refers to the practice of a government collecting money from its citizens to pay for public services”. Our country was practically founded because of differences on taxation. The Stamp Act, Townshend Revenue Act, and most famously the Tea Act of 1773, are a few examples given of the progressive start to the American Revolution. If we can fast forward to 1986, this is the year that President Reagan passed the Tax Reform Act of 1986. Needless to say, the main purpose of the Tax Reform Act was for simplicity. Simplicity in federal tax code than in the pervious generations of tax code, but since passed, I believe the Act has gone through several changes and has now made the federal tax codes a bit more complicated. An idea of the Fair Tax has come in to play as a new way to reform federal tax in the past 10 to 15 years to simplify current tax codes. The current federal tax income code is anything but simple as its complexity imposes high administrative costs, causes constant errors by individuals (us, the taxpayers), and a greater noncompliance with the tax system. I guess a good term would be to say simplification is a
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