Journal of Business & Economic Policy

ISSN 2375-0766 (Print), 2375-0774 (Online) DOI: 10.30845/jbep

Evaluating Flat Tax Theory: A Conceptual Framework
Dr. James N. Mohs

Tax receipts form one of the key tools of current macroeconomic fiscal policy. As governments are forced to increase spending levels satisfy their respective social, political or economic goals, they are consequently are forced to review new or additional sources of tax review. Government officials and political candidates theorize that new expensive programs can be paid for by increased taxes. A flat tax system has also been theorized to be an equitable solution to satisfy the increased tax revenue requirements. This paper reviews in general terms the current progressive tax system as well as a regressive flat tax system.This study further illustrates various approaches to the flat tax system, its benefits, and demerits on individuals and the general economy. The conclusions, recommendations and implications reached are generalizable and appropriate for use in developing best practice solutions.

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