Introduction of a flat tax system is very a controversial idea that is sometimes discussed in the USA. A lot of people think that flat tax rates are fairer, because the same rule applies to all categories of people. Moreover, some politicians, including Rand Paul, think that American tax legislation became too complex and people/companies waste a lot of time in order to understand how many taxes they have to pay (Nolan). Nevertheless, I think that progressive tax rates are much more effective for American economy. First of all, reduction of taxes that the rich must pay means that ...
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Introduction
Tax forms one of the major sources of government revenue; it contributes to economic growth and development as well as the overall prosperity of a country. Based on the method of collection, a tax system can be flat, regressive or progressive. The progressive tax system entails increasing taxes with an increase in individual or household income. The regressive system involves decreasing tax as income increases while the flat tax is a system where everyone pays the same tax irrespective of the income (Roach, 2003). The tax system adopted in a country depends on set objectives, its impacts on taxpayers, ...
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