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    0 Replies Latest reply on Sep 28, 2010 5:35 AM by blackhawk12

    Why Reshaping our Tax System is today an Absolute Must

    blackhawk12 Wayfarer
      In a competitive global economy, jobs and capital flow to jurisdictions with better tax law. Traditionally, this process of "tax competition" has benefited the United States, but there is growing evidence that America is falling behind.

      Other major benefits of a flat or fair tax:
      A Single Flat Rate. All flat tax proposals have a single rate, usually less than 20 percent. The low, flat rate solves the problem of high marginal tax rates by reducing penalties against productive behavior, such as work, risk taking, and entrepreneurship. Elimination of Special Preferences.

      If enacted, a flat tax or fair tax would yield major benefits to the nation, including:
      Faster Economic Growth. A flat tax would spur increased work, saving and investment. By increasing incentives to engage in productive economic behavior, it would also boost the economy's long-term growth rate. Even if a flat tax boosted long-term growth by only 0.5 percent, the income of the average family of four after 10 years would be as much as $5,000 higher than it would be under current tax laws.