This 5 page paper looks at how a flat tax system might affect the UK. Special attention is paid to the effect such a system would have on social programs. Bibliography lists 3 sources.
Name of Research Paper File: RT13_SA002Tax.rtf
Unformatted Sample Text from the Research Paper:
maintain the status quo and others who want complete change. At one extreme are activists who want to rid states of income tax systems altogether and have heightened consumption only
taxes. At the other extreme are those who agree with a system of taxation where the amount of money put into the government directly correlates with the amount earned. Those
in higher income brackets should pay more because they can afford to do so. Others prefer a "flatter" approach or one where the same percentage of tax is paid by
all. Because a percentage is used, it would be fair. Presently, England is enjoying a good economy. Yet, some of the citizens are unhappy with the present state
of taxation. While the flat tax idea is not a hot issue now, it is one which has been put on the table in the past. Further, it is an
issue which is discussed from time to time. A proposed 15% flat tax rate might be an effective compromise to the present taxation system. Yet, it is important to
discern just what effect the reduction of the standard income tax rate to 15% would be. Because it would likely reduce the amount of monies collected through income tax, what
effect would it have on future government spending policy? In looking at the proposal, one must look at the current tax rate schedule. For this tax year, ending on April
5, 2000, the primary rates of UK income tax are 10%, 23% and 40% ("Moneymaze" PG). The first ?1,500 is taxed at the lowest rate, then the next ?26,500 is
taxed at 23% and the remainder at the highest rate of 40% (PG). This is a typical schedule which taxes those who make less at a lesser rate and does