Flat Tax, Fair Tax, and U.S. Federal Tax System Free Essay Example, 5000 words

The U. must modify its current tax plan or change to another tax plan to ensure we are able to fund our budget while reducing the burden of the taxpayer. It has been suggested that flat tax and fair tax are two alternative systems of taxation that can be implemented in the country intending to improve the taxation system of the country. The flat tax system allows the same rates of tax to every taxpayer not considering their category of income (Flat Tax, 2013). The fair tax would involve replacing all the existing federal and corporate taxes with a federal retail sales tax of 23 percent to be governed by the authorities of sales tax that are existing in the state. The sales tax would not apply to imports, goods used by businesses to produce other goods, or used goods (Amadeo, 2013). The present study suggests that the fair tax would be the best alternative for the U. The purpose of this study is to learn about the different tax plans by reviewing the major aspects involved in each p lan using evidence-based research as a guide and then determining which tax plan is most advantageous for the U. We will write a custom essay sample on Flat Tax, Fair Tax, and U.S. Federal Tax System or any topic specifically for you Only $17.96 $11.86/page