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Tax Reform an Examination

In: Business and Management

Submitted By mlm11
Words 1360
Pages 6
Tax Reform: An Examination

Tax Reform: An Examination

A flat tax rate would be beneficial to all Americans. Critics of such proposals generally say that the wealthiest people in the nation would be the ones to benefit the most. The overall flat rate of tax would mean cuts for all Americans. The sheer simplicity of a flat rate is one of its biggest selling points. Rick Perry's plan offered in 2011 was imperfect, but it represented a overall structure and ideas. The focus of the plan scrapped, “the graduated income tax and replace it with a 20 percent flat rate. By throwing out rates as high as 35 percent and eliminating estate and investment taxes, the plan would grant a major tax cut for the wealthy…his proposal would also offer benefits to middle-class Americans by giving a $12,500 deduction for every member of a household while preserving exemptions for state and local taxes, mortgage interest and charitable contributions for anyone making less than $500,000. He said anyone could still file under the current code, and he also pledged to lower the corporate tax rate to 20 percent, from 35 percent” (Oppel, 2011). This means that taxes will be sliced for all groups in America: this will equate to more money for individual Americans, allowing them to make a greater investment in the private economy.

The plan was criticized as being ambitious because of the fact that most Americans wanted to see the wealthier taxed more heavily rather than the opposite. The plan would ask that the federal government engage in severe cuts in the federal budget and that spending would be no more than 18-20% of the gross domestic product. Perry’s plan would have definitely pushed the federal government tax collection in the right direction: it “would equate to a cut of one-quarter of the budget from 2011 expected…...

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