12/7/2023 0 Comments Pros and cons of flat tax rateReducing the complexity of a tax reduces the time and money taxpayers spend to pay it, never mind the heartache of hoping you did it correctly. Even if some simple and broadly applicable credits or deductions still exist (i.e., child tax credit, mortgage interest deduction) the benefits to families are obvious. I therefore owe $3,226 in my income tax to Kansas. For example, let’s say my taxable income after credits and deductions was equal to Kansas’s median household income of $64,521 last year, and I am taxed at a flat rate of 5%. Contrast the typical process for a flat tax and the simplicity is apparent. Americans spend 2.6 billion hours on tax preparation every year, not to mention hundreds or thousands of dollars on help calculating their taxes and navigating a web of deductions, credits, and other loopholes – often specifically tailored so that only a few people can take advantage of it. Here are four reasons why citizens in states with a flat tax would expect to have more economic opportunities and greater prosperity.Ī flat tax is easy to understand and implement because taxpayers don’t have to consult a CPA to understand the impact. The Sunflower State would likely benefit from joining those ranks and embracing the benefits of this reform. Over the last year, a “ Flat Tax Revolution” kicked off with four states across the country enacting legislation to go down to a single personal income tax rate Kansas, along with many states, has a graduated system whereby different income levels are taxed at different rates.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |