Sunday, February 6, 2011

How can simplify the tax code?

Is this simple enough? Over the years there has been different flat tax proposals. Steve Forbes promoted it when he ran for president. As you can see in the above example how much easier filling out that form than the regular 1040 form we fill out. As it appears in line 4, the is one exemption, poverty.
Another idea that is promoted promoted by groups like, replacing all taxes with a national consumption tax. Promoters are argue it would make things easier for everyone.
Here is what would make things easier, get rid of all the deductions and penalties except for the poverty exemption. While the fairtax seeks to make things easier, it could hurt people below the poverty line by increasing prices.