1. For many years the IRS has talked about switching to a flat

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1. For many years the IRS has talked about switching to a flat

 

1. For many years the IRS has talked about switching to a flat tax, wherein taxpayers would pay a "flat" or set percentage of tax on their gross income. Congress has not been too quick to act on this. A very simplistic example of how this would work would be, if your gross income was $60,000 and the flat tax rate was 10%, then your taxes would be $6,000. Under this system, itemizing deductions would be done away with and a lot of the adjustments to lower income to taxable income that we have in place now would be eliminated; however there would still be some consideration as to an individual’s filing status, age, number of dependents and possibly types of income. A. Do you think our present tax system should be reformed? Why or why not? B. What are your thoughts on a system using a flat tax rate without a lot of adjustments to income to reduce gross income to the amount that would be taxed. Would a flat tax system be preferable to the one we have? Explain why you answered as you did. C. Do you have any recommendations as to how our system of taxation in this country could be improved to make it equitable to all individuals regardless of their income, filing status or age?