The majority of people in America are in agreement that the current tax situation is getting unmanageable, but for one of the most common solutions proposed, the flat tax problems abound. The issues are numerous and have long prevented progress from being made on any adequate tax reform.
Chief Difficulties With A Flat Tax
One primary issue, and one of the concerns that creates such a wealth of flat tax problems, is that adjustments to the tax code almost necessarily are going to entail adjustments to the spending policies of the government. For instance, a flat tax, taxing everyone at exactly the same percentage regardless of income level, while seeming equitable on the fundamental level actually will create a tremendous deficit in the expected tax revenues for the following year. This is one of the most difficult flat tax problems to conquer. Certainly a simplified tax structure sounds great in principle, and a flat tax is the simplest...
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