Advantages and disadvantages of the FairTax Act Term Paper - 2

Advantages and disadvantages of the FairTax dissemble - Term Paper ExampleIn this regard, this essay will discuss the advantages and disadvantages of Fair Tax ferment proposed in the U.S.To start with, the Fair Tax Act would result into several advantages to the citizens by using ordinary revenue system. Firstly, the fair tax system is simple when compared to the lively system of taxation. One of the major aims of tax reforms is to simplify the taxation codes in order to save tax payers energy in terms of season and resources required to comply with tax returns (Garner, 2005). The existing federal taxation system is complex because of the many types of returns judge to be complied with making tax payers and even the government to incur extra expenses to acquire resources, such as documentations, that can help in compliance. In addition, different organizations have to higher financial experts to guide them in compliance to the federal tax code. Therefore, using a fair tax syst em would result into marginal usage of resources to comply with the taxation system hence saving the tax payers the additional costs associated with the existing tax code (Garner, 2005).Implementation of the Fair Tax Act would result into increased development in economic terms. According to Jokisch and Kotlikoff, carrying into action of the fair tax system would removes payroll taxes that reduce significant portions of generated income (2007). This makes consciousness because the fair tax figure taxes expenditure as opposed to the income thereby motivating people to nominate harder in order to generate more income for their personal development. In addition, the fact that the fair tax plan taxes consumption and not income encourages citizens to reduce their expenditure and increase on their savings something that indirectly stimulates economic growth.Lastly, the implementation of Fair Tax Act would result into fairness in taxation of people or