Advantages and disadvantages of the FairTax Act Term Paper - 2

Advantages and disadvantages of the FairTax Act - Term Paper ExampleIn this regard, this essay will discuss the advantages and disadvantages of Fair Tax Act proposed in the U.S.To get weaving with, the Fair Tax Act would result into several advantages to the citizens by using fair valuate ashes. Firstly, the fair tax system is simple when compared to the existing system of receipts. One of the major aims of tax reforms is to simplify the taxation codes in order to save tax payers energy in terms of time and resources required to harmonize with tax returns (Garner, 2005). The existing national taxation system is complex because of the many types of returns expected to be complied with making tax payers and even the government to incur scanty 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 syste m would result into minimal 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. gibe to Jokisch and Kotlikoff, implementation of the fair tax system would removes payroll taxes that reduce significant portions of generated income (2007). This makes sense because the fair tax plan taxes expenditure as opposed to the income thereby motivating people to work harder in order to generate more income for their personal development. In addition, the fact that the fair tax plan taxes consumption and non 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