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Reforming the U.S. Tax Code

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Reforming the U.S. Tax Code
Accounting 307: Federal Taxation
Professor Margaret Parrish
Kinisha Doley-Griffin
November 24, 2013 Should the tax system be reformed or should it not be reformed. That has been the question for years asked by congress and the people. Congress has not acted upon changing the tax system once during the debates. Many proponents of the tax reform support one system over another. We have heard multiple new suggestions for tax codes such as value added tax, a national sales tax, fair tax and the flat tax.
The flat tax has been in talk since the 1980’s, it was first suggested by two colleagues at the Hoover Institution, Robert Hall and Alvin Rabushka. Hall-Rabushka proposed that the present system would be replaced with a consumption tax. (Lang, 2012) This means that income would be taxed at the amount withdrawn or initially earned. This is the only time that the money made will be taxed and you would pay no other taxes. The flat rate tax will be set initially at 19 percent and would offer a family exemption. The goal is to have the flat tax rate set as low as possible and to keep the taxation base as broad as possible. Their plan is to maintain revenue neutrality for the government and allow taxpayers to keep more money they earn in their pockets.
In my opinion I think that the flat tax rate is as far as one can get. Yes, no one wants to pay taxes at all but living in America this is something that you must do or you will be fined. With the flat tax it will keep everyone on an even playing field and will disallow the deductions taken by most to cover their income tax or lower their income tax.
The tax system today is a very complicated system. There are so many loopholes that one can jump through to avoid paying taxes and if one really studies the tax code they can definitely find ways to complete this legally without any

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