Flat Tax

PROs:  This tax is good because it takes everyone at the same rate, "middle-class and upper-class incomes would both be taxed at 17%".  Only an individual's wage income will end up being taxed.  All investment income would be completely tax free. The flat tax will create straightforward payments for taxpayers.  It will eliminate double taxation; you are taxed only once, which makes people happy.  The flat tax eliminates global taxation and allows the United States to compete more equally throughout global markets.  The flat tax system does not discriminate based on income level; everyone pays the same percent of income.

CON:  The Flat Tax System tachnically penalizes individuals of "lower income".  This is because a person who is making $6,000 will be taxed the same amount as a person who is making $6,000.  Unfortunately, IRS employees would most likely lose their jobs under a flat tax system because this tax would dismantle the IRS.  A uniform flat tax without deductions for home mortgage interest would raise average taxes on the middle and lower class individuals.  The Flat tax can also be a bad tax for higher income individuals.  "No exemptions would be granted except for the lowest incomes".  


I support a Flat Tax because it would create a stress free tax life. where everyone is taxed the same and you can keep your investments tax free.




Progressive Tax
PROs:  The Progressive Tax will give the government more revenue while also giving middle/lower class individuals more opportunity.  These taxes are income based taxes.  A poor person who is making much less than other will pay much less in taxes than a person who is making a ton of money. " This tax creates a proper distribution of wealth".  Not everybody is paying the same amount in taxes.  Progressive Taxes also help out during recession time.  If a person's income drastically drops, then there taxes will drastically drop.

CON:  The progressive Tax will burden high income earners becasue they are taxed based on there income.  If you make a lot, you are taxed a lot.  If you make a little, you are taxed a little.  "We're running out of rich people to tax", states Alan Reynolds.  Since the amount of rich people is drcreasing, they need to tax the few that are left very highly.  This type of tax is unconstitutional because it doesn't treat everybody fairly.  Everybody is taxed a different amount.

I oppose the Progressive Tax because wealthy individuals will be giving a very large portion of their hard earned money away to the government.




Value-Added Tax
PROs:  With this tax, the Federal Gov. could benefit from consumer spending.  The Value Added Tax would eliminate the income tax system that we currently use.  This is because the VAT in much more efficient and would bring in more revenue.  This tax would tax all purchases including online sales, so this would solve the "lost online sales tax purchase" problem. "VAT must be paid by every company that handles a product during its transformation from raw materials to finished goods".  Every aspect of production is being taxed.  This tax would ultimately provide additional income to reduce America's giant deficit and fund important programs like health care.

CONs:  The Value Added Tax is very hard on the poor.  VAT Tax will pretty much be just another tax Americans will have to pay since it will be nearly impossible to eliminate the IRS and the income tax system in the United States.  "VAT would be more complicated to implement than other tax-reform options, such as national sales tax.  VAT would be very difficult and costly to businesses because they will have to calculate this tax at every step of the production process.  These costs would then be passed on to the consumer and as well as the new VAT Tax.


I oppose a Value Added Tax because it is hard on the poor and is very expensive for businesses to charge.





National Sales Tax:


PROs:  A sales tax is beneficial because the public school system is very dependent on sales tax revenue for their survival.  The schools put this towards vital things like paying new teachers, textbooks, and building new schools for students.  Public safety officers are paid through government funding generated from a sales tax.  The money from a sales tax also goes towards parks.  This money is spent on maintaining the grass and building play structures.  A sales tax will help the US with our deficit and help to improve our hurting economy. The article says, "Many economists believe a consumption based tax would be best from the perspective of promoting economic growth".

CONs:  A National Sales Tax will hurt middle and lower class families.  This is because this would create a regressive tax system where these individuals would have to pay a much higher percentage of their earnings than the wealthy.  "Nearly 80% of Americans in the middle/lower class income levels would pay as much as 51% more in sales tax than they currently pay under the income tax system" says the article.  These people would be paying much more in taxes than they ever paid with an income tax. 

I oppose a National Sales Tax because it hurts lower and middle taxes because it would create a regressive tax system and would have to give up a higher percentage of their earnings.