What are the advantages and disadvantages of a flat tax?

For the United States, two types of theoretical equal tax systems were designed. The first is a flat turnover tax on everyday items that is contrary to the 2011 sales tax rates, which vary according to the region and the state. The second is a flat income tax according to which everyone would cause taxes to be paid by the same rate, regardless of its work. This is, unlike the 2011 income method in the United States, which uses items such as expenses and income levels, among other things to determine how many users pay taxes each year. Taxes of turnover may fluctuate wildly, depending on the area of ​​the country in which the person buys, and one lump rate would facilitate the management of both and in some places, perhaps cheaper. The potential negative effect of a flat turnover tax is that some districts or states could lose money is the rate of tax apartment lower than their current turnover tax rate. Many local and state governments depend on the revenue of the turnover tax so it wouldOhlo lead to the loss of funding of these areas.

One positive income tax would be a sense of justice for all consumers. If everyone was taxed for the same rate of equal taxes no matter what a person is doing every year, he would no longer be a perceived punishment for success. One of the disadvantage is that with the 2011 tax system of 2011, some households are exempt from taxes for various reasons. With a flat tax system established, these households would eventually spend more money in taxes than in a traditional system.

Another potential disadvantage of equal income tax is that no tax deductions would be allowed. This could be reduced into the amount of charity gifts of people who, under traditional tax structure, to provide charity gifts to increase to the amount of money that can deduct against their income at the end of the tax year. This could also have a negative impact on AMErical housing market, because many taxpayers receive deducts as incentives to buy new houses throughout the year. On the other hand, experts predict that equal tax would stimulate economic growth, which could balance the negative impacts on areas such as the housing market.