Would a Flat Tax Make You Any Happier ?
Whether it would make you feel any happier is debatable, but one thing is certain, it’s easier to understand than our current progressive tax system. Whereas now your rate escalates as your income increases, with a flat tax would not impose different tax rates on people who earned different incomes.
You would be taxed at the same rate no matter how much you make, whether you’re a millionaire …… or someone making barely enough to qualify for being taxed. For example, a sales taxes is a flat tax, as is the payroll tax.
The reasoning behind our present progressive tax system is that it reduces the tax burden on those with less income since they need to pay a higher percentage of their earnings on the necessities of daily living. On the other hand, those with higher incomes can easily afford these basic necessities with a greater amount of discretionary income left over.
Working toward a More Tax Literate Society
As an article in the Chicago Tribune points out, too many of us lack the basic understanding of the science of taxation to be considered tax literate. And the cost can be high, not only to our pocketbooks but to the nation as a whole. Tax literate citizens are more capable of ruling out fiery political rhetoric regarding taxation and voting with their knowledge.
To that end, more and more high schools are incorporating tax literacy into the financial literacy courses already in their curriculums. And that should you happy.
Dana George-Berberich is a freelance reporter and novelist. She has written finance articles for newspapers across the country and for companies like Dun & Bradstreet and Bankrate.
