Taxation 1

Taxation 1

Taxes

Like Benjamin Franklin once said, “Two things you can be certain; death and taxes.” Taxes play an important role in the lives of American citizens. Although it seems like everyone despises paying taxes, they are essential to the way of life in America. All people pay taxes in one way or another. Whether collected as income taxes or sales taxes, and only certain groups or organizations are considered to be tax exempt, like (religious activities). There is no best or perfect way to be taxed, but income taxes are the current way the U.S. Government collects revenue.
Ronald Reagan started a Private Sector Survey on Cost Control (PSSCC) to find the inefficient spending in the Federal Government. After an assessment was completed by this new section of the Government, a report called the Grace Commission was proposed to Congress in 1984. It was said to help reduce the national debt by saving around 424 billion dollars through federal taxes. The report stated that by following the reforms would keep the national debt from exceeding nearly 1.9 trillion by the year 2000. Without these reforms the national debt would raise to almost 13 trillion dollars by the year 2000.
A Fair Tax has been proposed to eliminate all federal income and payroll based taxes. These concepts in alternative taxation have derived in several formats like the Flat Tax that would tax all individuals alike and no tax filing at the end of year, and the Fair Tax that would eliminate the income tax as we now know it and convert to a Federal Sales tax. This form of taxation is based on a percentage of items and services you buy. It is fair because people will be taxed on luxury items such as boats , cars , and TV’s and not so much food. No matter what social class you are in you can control how much you pay in taxes depending on what you buy.
As far as both income tax and sales tax goes, sales tax is the better of the two. My first reason for saying so is that everyone working for a...

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