Watch the video above and talk about it with a group or mentor. Learn more.
Americans are taxed like never before, and the code is more complicated than ever. Author Steve Forbes states his case for moving to a flat tax.
Key Points:
- Big companies can game the system, looking for loopholes and tax breaks. But small businesses don’t usually have the same advantage. The Federal income tax code is estimated at 10 million words and rising – too complicated for the average Joe to understand.
- The taxes themselves are only part of the cost to taxpayers. There’s also the cost of “compliance” – the time and expense required to comply with an increasingly complex system.
- Forbes suggests that the best solution is the most simple: a flat tax (17% for everyone) to take away the power of lobbyists and big government. Everyone would pay less, and the economy would benefit overall.
Quote This:
I think a flat tax has merit. Anything would be better than the current tax code. -Bob Beckel
Talk About It
- What is your initial reaction to this topic? What jumped out at you?
- Share about a wealthy person or corporation who “gamed the system” for tax benefit. Share about a poor person who did the same thing on the other side. In your opinion, which is worse?
- On a scale of 1-10, how well do you think you understand the tax code? Do you think you could save money if you went to a top-tier accountant? Explain.
- When do you do your taxes? Do you do them yourself or through an accountant? Estimate your annual cost of “compliance” for your taxes.
- What’s your first reaction to a flat tax? If we adopted his plan, would it hurt or help you? Explain.
- Forbes shared the upside of a flat tax. Make a list of the downside.
- Why do you think we haven’t gone to a flat tax?
- Write a personal action step based on this conversation.
