Analysis of flat tax implementation in the United States

Abstract

The income tax system in the United States is very controversial, and it is constantly being debated. The current system has deductions, credits, and graduated marginal tax brackets; it is progressive in nature. Many politicians, both in the past and presently, have advocated for abandoning the current tax code in favor ofa "flat tax." By definition, a pure flat tax taxes every dollar of income at the same percentage, regardless of the taxpayer's income level; it is not progressive. In this paper, I will explain both the current tax system and what possible flat tax systems might look like in the United States. I will then detail and analyze arguments on both sides of the flat tax debate.