The rage about the U.S. federal government adopting a "flat tax" system continues on this year, even as the 2006 federal tax fling deadline is now behind us. If you've been involved in your tax filing in the last decade, you probably know how complicated and arcane filing federal taxes can be. For many of us, software products like H&R Block's TaxCut or Intuit's TurboTax makes the process much less painful. For others, a trip to the overworked accountant is generally in order. Very few (I believe) attack their own taxes single-handedly. Maybe if you are an IRS auditor you feel comfortable doing this. I won't even touch corporate taxation here.

Growing economies may even need to look at a flat tax structure according to the CATO Institute. This seems appropriately timed I think. But, it would take (and is taking, probably) an army of Ph.D. economists to make a case for or against the transition to a flat tax in the U.S. After all, those pork barrel projects, wars, social programs and other live and die on the backs of federally-collected taxes, right? Any hiccup that would harm the revenue planning of the U.S. federal government just won't cut it. But is a flat tax fair to everyone?

Would the U.S. see problems with citizens being taxed on consumption and at the same marginal tax rate? There are some the believe that expansion and general economic development of Eastern Europe (former Soviet Union areas) is being assisted greatly by the adoption of a flat tax. While it's hard to compare an advanced economy like the U.S. has to parts of Eastern Europe, an adoption of the flat tax is still being considered by many in power these days (along with being popular in many circles). Will the U.S. see it some year soon? Let's get out our crystal balls, shall we?

Is the U.S. ready for a flat tax? originally appeared on BloggingStocks on Thu, 19 Apr 2007 05:00:00 EST. Please see our terms for use of feeds.