Photo by Mimi Thian on Unsplash
Whatever your political persuasion, we might agree the U.S. tax system needs reforming.
But arriving at a consensus will be a challenge. The IRS and the Internal Revenue Code code is complex and confusing. It also favors some demographics over others.
Still, there are many misconceptions about taxes.
Yes, one could argue the tax system is broken and needs to be simplified. Thanks to the efforts of some lawmakers, tax reforms could alleviate income inequality.
Is cutting payroll taxes the simple solution? A Biz Coach answer is no, not quite. Others, especially Steve Forbes, vehemently argue in favor of a flat tax.
Before debating specific proposals, it would behoove you to pass a qualified tax quiz and understand all factors in the big picture – how the tax system works.
Consider this infographic:
How the U.S. Tax System Works, courtesy of Peter G. Peterson Foundation
From the Coach’s Corner, see these related posts:
What Now with the National Debt Hitting $30 Trillion? — America is falling off a fiscal cliff. Why the national debt must be erased — it adversely affects you and everyone in the nation.
Oxymoron – Bidenomics and Leadership. What Now? — How badly will Americans suffer as inflation and prices continue to skyrocket in Bidenomics? The ultimate nightmare because it leads to stagflation.
Budget Cabal: Higher Debt, Taxes and Government Rule — Why you can expect dire consequences from the Biden Administration’s budgeting approach.
Academic Study: Rich Pay More than Their Share in Taxes — A study by the National Center for Policy Analysis reveals the current tax code is highly progressive. It’s entitled, “U.S. Inequality, Fiscal Progressivity, and Work Disincentives: An Intragenerational Accounting.”
How CEOs, Taxes and Policymakers Failed the U.S. — President Trump was elected largely because businesspeople and consumers lacked confidence in the economy – for good reasons.
“We have a system that increasingly taxes work and subsidizes nonwork.”
-Milton Friedman
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