POLS410 – Week 2 – Forum Discussion / Economic Policy & Taxation

current debates about ideas to revive the economy generally fall into alignment with either classical or Keynesian economic theory. Some suggest that growing U.S. debt is a strong incentive for tax reform.

(1) Should we have a flat tax? Why or why not?

(2)

What are the merits and risks of other tax-based reforms? Please

assess at least one additional reform. Examples include, but are not

limited to: a national sales tax, value added taxes (VAT), eliminating a

variety of deductions or credits.

should be at least 300 words in length

20191018003158week_2___keynesian

Solution Preview

Economic Policy and Taxation
Flat Tax
While a flat tax system could bean attractive regime, it fails to account for the potential impact it would have on the total amount of tax collected and on equality in the country. Using the current progressive regime, those at a higher income pay higher tax rates than those at lower income levels.

(335 words)