The age-old debate: flat vs progressive tax. Which system is better? Let's dive in and explore the pros and cons of each.

Under a strict flat tax system, no deductions or credits are allowed. This means that everyone pays the same rate on all of their income, regardless of how much or how little they earn. For instance, under a 24% flat tax system, all Americans would pay 24% on all of their income.

The pros of a flat tax system include simplicity and fairness. With only one tax rate to worry about, it's easier for individuals to understand and plan their finances. Additionally, a flat tax system eliminates the complexity and potential for errors associated with progressive taxation.

However, there are also some significant cons to consider. One major drawback is that a flat tax system would likely result in higher taxes for low- and middle-income earners. This is because they would have fewer deductions and credits available to reduce their taxable income.

In contrast, under a progressive tax system, various deductions or credits are allowed that can reduce the amount of tax someone ultimately pays. For example, at the top of the tax bracket range, those with taxable income over $539,900 ($647,850 for joint filers) will pay a 37% tax on each extra dollar of income they earn above those levels.

The pros of a progressive tax system include fairness and redistribution of wealth. By allowing deductions and credits, it's possible to reduce the burden on low- and middle-income earners while still collecting revenue from high-income earners. Additionally, a progressive tax system can help reduce income inequality by taxing those who have more at a higher rate.

However, there are also some drawbacks to consider. One major con is that a progressive tax system can be complex and difficult to navigate. With multiple tax brackets and varying deductions and credits, it's easy for individuals to get lost in the process.

Ultimately, whether a flat or progressive tax system is better depends on one's values and priorities. If simplicity and fairness are key, a flat tax system may be the way to go. However, if fairness and redistribution of wealth are more important, a progressive tax system may be the better choice.

What do you think? Do you prefer a flat or progressive tax system? Let us know in the comments!

Flat vs progressive tax