Are flat taxes the best system?

D

dimpy.handa

Dimpy Handa
Flat taxes are clear and simple to administer, and to understand. In many countries the complexity of tax legislation makes businesses and individuals afraid and uncertain of the tax system. Certainty is a Smithian canon of taxation - and this is increased by a single flat tax
 
I agree that Flat taxes are easy to administer but not the best to encourage ppl to save.I would tax slabs would encourage ppl to look for avenues to save.So,ppl who invest should get the benefits and those who don't should be taxed more.Moreover,ppl who earn more should pay more taxes and who earn less should pay lesser tax.I feel Govt should increase the avenues for saving taxes rather than making it as a flat tax.Creating more avenues will encourage ppl to save more and thereby also make ppl to file tax returns properly.

-Deepak.
 
yesss..
a constant tax rate would be much more beneficial since it gives a fixed and an accurate number.. it might be a little high and low but yet will prove beneficial in the long run
 
The flat tax is a classic Republican issue, because it seems to reverse the redistribution of income that is a part of a progressive tax. Republicans disagree and say people will end up paying about the same amount as they do now because of the elimination of loopholes. This idea is in question, but there is no doubt that a flat tax would make paying income tax much simpler, and that in itself will garner the idea a good deal of support.
 
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