Flat Tax

Unified tax 1 Current tax system The current income tax system is very complicated. It was too complicated, the IRS issued 480 tax returns and they posted another 280 tax returns describing the 480 tax return. "The IRS sends 8 billion pages of paper and instructions each year, and if the paper and the instruction sheet are in contact with each other at the edge, it will go around the globe 28 times and then print the instruction sheet "(Alme, Shelby). The main reasons for the complexity of the tax law are deductibility of tax law, sudden increase in credit, and other special preferences.

A fixed tax (abbreviation for flat rate tax) is a tax system with a certain marginal tax rate, which is usually applied to individual or company income. True single tax is proportional tax, but depending on tax base deduction or exemption, introduction is often done in phases, and in some cases it will be reduced. Even though they are very different, there are various tax systems marked as "single tax". If deduction is allowed, "single tax" is progressive tax, and if it exceeds the maximum deduction amount, the marginal tax rate of all subsequent income will be constant. It is said that this tax is a little over this point. Recognizing that both taxes are equal to taxable income since the difference between a true single tax and a slightly flat tax excludes certain types of income from the latter being simply defined as taxable income You can adjust by doing.

In his book "Capitalism and freedom" published in 1962, the negative income tax (NIT) proposed by Milton Friedman is a single tax. The basic idea is the same as a single tax deducted by an individual, but if income exceeds income taxable income is permitted to be negative instead of being set to zero. Then apply a uniform tax rate to the resulting "negative income". It brings "negative income tax" to be borne by the family by the government - unlike regular 'positive' income tax, the family owes the government