Support for a flat tax has been urged in the past few months by House Majority Leader Richard Armey, a republican from Texas. Richard Armey has put forth a lot of effort of support for a flat tax. Under Richard Armey’s proposal, a family of four could have the first $36,800 of their total income free from taxes. As coming from a family that barely gets buy, a flat tax would help all people in need. There are three major flat taxes, first there is a single flat rate, second elimination of deductions, credits, and exemptions, and last a non-double taxation of savings and investments. There are many advantages of flat tax, too.The first advantage of a flat tax is that it would cause a faster economic growth. A flat tax would mean increased work, savings, and investments. By doing this there would be an increase in the economies long-term growth rate. If the flat tax increased with a the growth rate as little as 0.5 percent, then the income of an average family of four after ten years could reach up to $5,000 higher than it would be if the current tax laws remained in effect. This is one reason why it would not only be a good idea to have a flat tax, but as you can see this would help out some families that are in need of financial help. Second, if we had a flat tax there would be more simplicity and fairness. A flat tax would treat all people equally from the wealthy to the not so wealthy. Even though a flat tax would be more regressive than the current system, winners and losers will widely vary.(Entin, Stephen) All taxpayers, from a simple business man to someone making sandwiches at Subway, would be able to fill out there tax return on a postcard-sized form. With doing this the compliance cost would drop by tens of billions of dollars. The current tax code requires taxpayers to devote about 5 billion hours each year to there tax returns. With all this time there is still no guarantee of accuracy. The new forms woul...
