The Flat Tax Essay -- Economics

The Flat Tax The â€Å"consumption tax† as a replacement for the income tax is at least a subject of noteworthy question and debate. It seems as though, the means in relation to the ends are not always justifiable, but when approached properly, can benefit all. To answer the question of whether a consumption tax should be applied, I examined both my morals and my ideas of capitalism and free enterprise in relation to democracy. Is it fair to establish a tax that rewards the already wealthy and pose a threat to the already shaky financial standing of the poor? No; but a system that rewards success is important. So what is the solution? As an American, I am infused with the spirit of capitalism. While this is a wonderful thing, we must carefully draw the line between the tendency of capitalism towards over individualism and over extended tax burden. The burden to which I refer is of course, largely progressive taxes. With a tax system that is overly progressive (such as the present law system) we risk removing the incentive to invest in America’s companies and also remove money from the pockets of would be employers. As I examine the opposing idea of a regressive tax system, with which I am equally at odds, I find it to be morally repugnant to punish the poor simply for their lower economic standing. With the notion that income tax is going to tend towards the progressive side in the U.S., I feel that repealing such a liability may be beneficial for the Americ...