There are currently two proposals for changing the US tax system that have gained popularity with the people, the Fair Tax and the Flat Tax. Here is a brief look at each.
The Fair Tax
The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The ‘Fair Tax’ is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.
A flat tax is simple, fair, and good for growth. Instead of the 893 forms required by the current system, a flat tax would use only two postcard-sized forms: one for labor income and the other for business and capital income. Unlike the current system, which discriminates based on the source, use, and level of income, a flat tax treats all taxpayers equally, fulfilling the “equal justice under law” principle etched above the main entrance to the U.S. Supreme Court building.
IRS and Income Tax
The American tax system is a huge machine with a tax code that seems more complex than rocket science.
Not only is the United States government’s income tax code extremely complicated, it is also extremely unfair. It has become the number one method of redistribution of America’s wealth with nearly 1/2 of all adults not paying any income tax yet still receiving refund checks.