Taxes And Its Objectives

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on work effort and the quantity and allocation of investment and saving, minimizes reliance on scarce administrative resources and demands on taxpayers' compliance.
The Armey-Shelby flat tax is a proposal that would replace the corporation and personal income. The Armey-Shelby flat tax proposal follows each of the principles of a flat tax. A flat tax eliminates all loopholes and tax breaks. It ends the taxation of investment income and puts everyone on the same level. Under the Armey-Shelby proposal, individuals, the income from wages, salaries, and pensions is taxed. Individual taxpayers add up income from these and then deduct generous personal exemptions. What is left after these deductions is taxed at 17 percent, after a two-year phase-in period. For businesses, taxes are paid on income from the sale of goods or services. The business first adds up all of its income and then subtracts what it paid out in wages and salaries, what it purchased in order to make its ...

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going to have an impact on the housing industry, which would have an impact on the economy. If you eliminate the charitable deduction, it's going to reduce the amount of contributions. And if that happens, then federal government will probably have to pick up the slack. Critics of the flat tax have suggested that it would raise taxes on lower and middle-income Americans while providing tax cuts for the wealthy. However, the evidence simply does not support this claim. With a 17 percent rate, and personal allowances that exempt the first $33,800 of income for a family of four, the Armey-Shelby flat tax liberates millions of families from federal taxes. The flat tax is also ...

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