Posts tagged ‘flat tax’
In this video, Dr. Daniel Mitchell, Senior Fellow Cato Institute, reveals that many countries around the world have adopted the flat tax.
Here are some of the points that Dr. Mitchell makes:
There are approximately 24 countries (when the video was filmed) who have adopted the flat tax. Examples include Hong Kong, Estonia, and Iceland. In addition, many former Soviet-bloc nations have adopted it as well, an ironic development since Marx’s Communist Manifesto called for a progressive, not a flat tax.
Dr. Daniel Mitchell, Senior Fellow Cato Institute, provides a good overview about the need for and benefits of a flat tax1.
Here are some of the points that Mitchell makes:
The present tax code is an unmanageable mess. It is extremely complex. It requires an inordinate about of time and expense to prepare the required forms. It does not treat everybody the same, but rather grants various deductions, exemptions, shelters, preference, exclusions, and credits to favored special interests. It’s time we junk it in favor of a flat tax.
Chris Edwards, editor of DownsizingGovernment.org,1, explains why the tax code is an impossible mess and why we need a flat tax.
Here are some of the points that Edwards makes:
In the first year of the income tax (1913), the federal tax code was 400 pages long. Today, the federal tax code is 73,608 pages long and requires nine feet of shelf space. The code has tripled since 1970.
In 1913, the instructions to the 1040 tax form were one page long. Today, the 1040 instruction book is 189 [...]
This week’s lesson explains why we need a flat tax. To start out, go to the Three Reasons section, where I provide three short videos on the following topics:
The flat tax saves money because it is simple. A flat tax is more transparent. A flat tax closes loopholes and reduces special interest lobbying.
Did you know that former Communist countries have seen the light and adopted the flat tax? These include Russia, Ukraine, Romania and others, as shown in the graphic below. If they can figure out the advantages to a flat tax, why can’t we?
(Source: Fusion, September 2010(1))
According to a 2010 Fusion article(1), 25 countries have adopted the flat tax as of 2008. These include Hong Kong (with an individual flat tax rate of 15% and a corporate tax rate of 16.5%) and even Russia (with an individual [...]
Our tax system is a monstrosity that began as a 4-page form for individuals to complete in 1913 and has grown to 176 pages, if you count today’s 1040 with instructions. For corporations, it’s even worse. The National Taxpayers Union reports that General Electric in 2006 set a record by filing a 24,000 page tax return! We waste 7.64 billion hours costing $227 billion trying to comply with the byzantine rules formulated over the years in response to special interest groups(1)