Flat Tax: Reality Or Make Believe?

By Author: DANNY BREEDLOVE
Total Articles: 11
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Did you know? The Declaration of Independence has a little more than 1300 words, The Constitution, which has served us well for more than 200 years, comes in around 5000 words. The Holy Bible makes do with less than 800,000 words. And our beloved Tax Code has as many as 3.7 million words.

At a time when the nation’s manufacturing industries, (the foundation of any good market), are all struggling against cheaper imports, shouldn’t our leaders be using that money to create occupations for their citizens?

From the minute we wake up in the morning we're being hit by taxes. Everyone wants some of our hard-earned cash. We're so programmed to paying them that we truly do not take any notice any more.

Has the time come for an easy Flat Rate Tax, something we (the people) can ALL comprehend? There are lots of nations, all around the world, who've used this simple-to-understand, economical way of collecting taxes to revitalize their markets.
A Flat Rate Tax for individuals, plus a Flat Rate Tax for companies. The same rules applying to all, regardless of the size of income. All of us paying the same ...
... rate. A lot of the successful countries have imposed Flat Rate Taxes of less than 17%, with a starting amount that protects the lower income groups.

One such nation is Estonia, proof of the system’s benefits. This country is located between Russia and the Baltic Sea and has a population under two million residents, roughly about the size of Texas. Estonia policy makers made a decision to go with a 26% Flat Tax, which has been greatly reduced since its introduction. The move towards Flat Tax helped its economy grow and helped lower its unemployment rate.

Many country followed Estonia example, Russia being the largest economy to have adopted this measure. Kuwiat, Mexico and a handful of other nations are also considering Flat Tax.

There are many arguments for and against Flat Tax Rates. Perhaps, the most popular argument against; flat tax could give middle class families an extra burden. Wait, isn’t that the case now under our current tax system? There are many indicators which suggest that the middle class pays a higher tax rate then millionaire or billionaire. Even Billionaire investor Warren Buffett has advocated for higher tax rates for high-income taxpayers.

A study from the Institute on Taxation and Economic Policy has noted that virtually every state’s tax system is fundamentally unfair, taking a much greater share of income from low-and middle-income families then from wealthy families.

A Congressional Budget Office Study dating back to 2007 shows that middle-class households earning between $34K and $141K paid 50.5 percent of all federal tax revenues. So ask yourself, where’s the fairness?
The real question, would our leaders truly need us to comprehend what is going on behind closed doors? And then, there are the lobbyists, need I say more.