The Wrong Way To Sell A New Idea

Many people would like you to believe that flat tax is so named because it will flatten your finances. That at the least is the intended conclusion. By eliminating personal deductions like mortgagee interest payments, the study claims, the flat tax would reduce housing values in this country by upwards of 10 percent. The study's methodology is shaky at best, and the jury on housing values is still out.
Despite the forces allied against the flat tax, tax reform has grown steadily because the current tax system is so unpopular and the alternatives promise so much. But in addition to the possibility of lower housing values, the flat tax poses several oth er serious problems too ...

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fringe benefits, among other things.
Though businesses will try to pass on these costs to consumers and employees-by raising prices and trimming fringe benefits, for example-shifting the nations tax burden to the business community will not produce successful tax reform. Next, the flat tax initially would raise taxes on the middle class by 20 percent. On average, a family with between $40,000 and $50,000 in adjusted gross income would see there taxes rise about $700 to about $7.500.
The flat tax also appears to have a major fairness problem. For example consider two families. The Jones have a combined salary of $50,000 in wages. Under the flat tax, a 20 percent rate would cost this family $3,700. Now consider the Smiths, who in r etirement consume every dollar of their $1 million in dividend income. Under the flat tax, the Smiths owe no tax at all because capital income is excluded from the tax base. To be sure, their dividend income was taxed at least once at the ...

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The Wrong Way To Sell A New Idea. (2003, December 23). Retrieved February 24, 2019, from
"The Wrong Way To Sell A New Idea.", 23 Dec. 2003. Web. 24 Feb. 2019. <>
"The Wrong Way To Sell A New Idea." December 23, 2003. Accessed February 24, 2019.
"The Wrong Way To Sell A New Idea." December 23, 2003. Accessed February 24, 2019.
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Added: 12/23/2003 12:31:25 AM
Category: Economics
Type: Premium Paper
Words: 653
Pages: 3

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