Growls

Anyone who has tried preparing their own federal tax return knows the current system needs fixing. One way would be a flat tax. Those interested in learning more about the flat tax have a resource in this policy paper published by the National Taxpayers Union. It was updated earlier this year with additional economic and revenue data. The paper seems well-researched with sections on the definition of the flat tax, the success and spread of the tax, and the implications for the United States.

The paper’s conclusion is that:

The flat tax is a simple, fair, efficient, and effective model for tax reform. The increased incentive to work and invest, combined with revenue growth and economic competitiveness make it an attractive alternative to the complicated tax systems currently in place in many developed countries. As the flat tax continues to spread throughout Eastern Europe, it drives global tax competition, benefiting citizens and corporations alike. Given the success of other nations in reforming their tax codes to make them more friendly to growth, it is only sensible that the United States should seek fundamental change in its own Tax Code in order to avoid falling further behind in the race to attract Foreign Direct Investment. Developments in Eastern Europe provide the U.S. with one working model of what serious tax reform could do for economic growth. So does the National Retail Sales Tax. In either case, the U.S. should not delay in enacting meaningful Tax Code reform.