| |
| |
CONSUMPTION-BASED TAXES |
|
|
|
| |
 |
|
 |
| |

PROPOSED FLAT TAX AND OTHER CONSUMPTION-BASED TAXES This research paper examines policy rationale and other arguments for adopting a flat tax or other consumption-based tax system in the United States, as advanced by Professors William Andrews and Robert Hall & Alvin Rabushka, then discusses how the current tax system would be changed if either the USA Tax or the Flat Tax bills (S. 722 and H.R. 2060) which have been introduced in Congress were enacted and finally discusses some of the problems associated with the tax treatment of compensation of employees under the provisions of these bills. I. Arguments for Adopting a Consumption-Based Tax System. A major argument for adopting a consumption-based tax system is that it would be simpler, more efficient and easier to administer. Hall & Rabushka call the present tax system "a nightmare of complexity," which they estimate generates per annum direct and indirect compliance and enforcement costs of hundreds of billions of dollars. They claim that their flat tax "would save the taxpayers hundreds of billions of dollars in direct and indirect compliance costs." Andrews points out that much of the complexity and inefficiency of the present system stems from the difficulties involved in attempting to tax not only personal consumption, but also the accumulation of wealth. He says that "many of the most intractable problems in the personal income tax arise out of the hybrid character of our treatment of accumulation." Unde
Related Essays
Flat Tax & Consumption Based Taxes PROPOSED FLAT TAX AND OTHER CONSUMPTION-BASED TAXES This research paper examines policy rationale and other arguments for adopting a flat tax or other .... (2974 12 )
PROS AND CONS OF FLAT TAXES AND SALES TAXES .... This research paper examines the potential advantages and disadvantages from a public policy standpoint of various types of consumption-based taxes which have .... (2887 12 )
Federal Income Tax vs a Consumption Tax .... mistaken. Arguments that consumption taxes are regressive are based upon analyses which measure ability to pay against annual income. A .... (6905 28 )
Clinton Administration & Economic Issues .... needs to cut spending and raise revenues - that is, increase taxes somewhere within .... is the imposition of a broad based tax on energy consumption based upon the .... (1704 7 )
National Sales Tax .... mistaken. Arguments that consumption taxes are regressive are based upon analyses which measure ability to pay against annual income. A .... (4755 19 )

me from the discharge of indebtedness income would be includible in gross income. However, the amount of such discharge is expressly excluded from income under sec. 4(a)(9) "unless the discharge is for services, property or other valuable right."
C. Life Insurance Proceeds. Under current law, sec. 101(a), proceeds of life insurance policies are not subject to income tax. These proceeds are viewed as a return of capital since premiums are not deductible. The tax-free buildup in policy values in whole life policies represents a windfall to policy holders. Under the Flat Tax, such proceeds would be totally exempt from income taxation, except for annuities which might form part of retirement benefits, and they would be free of gift and estate taxes, which are repealed by sec. 106. This is totally inconsistent with the theoretical rationale for a flat tax. Under the USA Tax, such proceeds are includible in taxable income, but a deduction is allowed for premiums, thus recapturing for tax purposes the buildup in policy value. Similar treatment is accorded to annuities. Under the USA Tax, the costs of most types of employer-provided insurance would be includible in the employee's income but he or she could deduct that cost as savings
Category: Economics - C
|
|
 |
|
 |
|
|
| |
|
|
| |
Flat Tax, USA Tax, Hall Rabushka, Andrews Rabushka-Hall, Snyder Gallegos, Depletion Deductions, Employee Discounts, Tax USA, Capital Losses, flat tax, Discharge Indebtedness, usa tax, income tax, current law, fringe benefits, tax system, code sec, current law code, law code, tax usa tax, consumption-based tax, tax usa, flat tax usa, law code sec, consumption-based tax system,
= 3003
= 12 (250 words per page)
|
| |
|
| |
|
| |
|
|
| |
 |
|
 |
| |
Click Here
to Get Instant Access to over 32,000 Professionally Written Papers!!!
|
|
 |
|
 |
|
|
|
|
|
| |
|
|
| |
|
|
| |
|
"Thank you for making such a high quality site! Your papers are the best I have seen around"
|
Debbie B. |
| |
|
"Your site was very helpful and gave me the details I needed in order to complete my essay!!!"
|
Mike F. |
| |
|
"This site is an excellent vehicle for quick referrences. Thanks a bunch!"
|
Carla T. |
| |
|
"Great site, I got a lot of new ideas I would have never thought of before."
|
Nate A. |
| |
|
"I love this site!!!"
|
Marie H. |
| |
|
| |
|
|