It would also eliminate distortions that influence tax collection and growth in the economy. The estimates used by Friedman also showed that the flat tax rate would result in higher revenue than the graduated tax system. It was coercive and conflicted with personal freedom, according to his calculations a flat rate tax of 23.5% would yield the same amount of revenue for the government as the progressive tax rates that were applied at the time. In his opinion, redistribution of income through progressive tax was unfair. Friedman proposed the first flat rate tax on income in 1962. He wrote scholarly works on stabilization of the economy, consumption analysis, and monetary theory. One of the most well known economists to popularize the flat tax system was Milton Friedman, who was a prominent advocate of libertarian ideas. This differs from progressive tax rate systems that charge a higher percentage of tax on people with high incomes than those with lower incomes. A flat rate tax system charges an equal proportion of tax on the income of citizens in spite of their income levels.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |