Abstract An economic approach to why America should move towards a flat tax or a VAT tax as the Europeans use, as opposed to the restrictive and damaging stepped tax used today.
From the Paper "The way in which our tax system is set up leaves the majority of us wondering what is going on. To put it concisely I must quote Republican Dick Armey in saying "Our current tax system is broken. It is complex; unfair; inhibits savings, investments and job creation; imposes a heavy burden on families; and undermines the integrity of the democratic process. It cannot be repaired by any tinkering or fine tuning. It must be completely repealed and replaced". The U.S. tax code, as Armey says, has many problems and negative implications on our economy. Our Tax system now has so many loopholes and deductions that it actually brings up the marginal rate of taxation for everyone. Savings is discouraged by double taxation, once on your money earned from working, before investment, then again after benefiting from an investment. All of these issues can be cleared up under a flat tax."
