I prefer the flat tax system. I think this tax system will give people more incentive to make more money or expand a business they usually might not expand. With the flat tax system, everyone is taxed the same percent. A downside to this system for some is that there are no exemptions or deductions. With everyone being taxed the same percent, no matter their income, people will be more driven to make more money because they will still be taxed the same amount. I believe that equity and fairness plays a huge roll in the tax system. The rich want lower taxes, because with most tax systems they will pay more taxes. Those who make less want to pay less taxes because they are making less and usually think that those that are making more should pay more in taxes. I personally, don’t think there is a way to make everyone happy, but can come close to it.
I believe that Trump’s tax bill will lead to only a short-term growth in the economy. Overall, I don’t think it is going to make a big change in the economy. Below is evidence to back my thoughts:
“Most broadly, the tax cuts have not generated the promised growth of 3% or more – even in tandem with the additional stimulus of large government spending increases that Congress enacted separately. After an uptick in the second quarter of 2018, growth declined in the next two quarters to end up at 2.9% for the year.”
“Goldman Sachs economist Jan Hatzius says that second-quarter surge – initially measured at 4.2% but later revised down to 3.5% – represented the tax law’s peak impact. He expects it to vanish altogether by late this year or early 2020, as the economy returns to the same 2% growth levels Trump inherited from President Barack Obama.”
“Those levels assure the failure of another tax cut promise. Trump and congressional Republicans insisted the law would spur so much economic activity that surging new revenues would replace those lost through lower tax rates.”
Source: https://www.cnbc.com/2019/08/16/trumps-tax-cut-isnt-giving-the-us-economy-the-boost-it-needs.html
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