Response to Greg Mankiw’s “The U.S. has a flat tax (in effect)”

I found this article to be very interesting as very few people actually pay attention to the marginal tax rate increases rather than the tax rate overall. Mankiw looks at tax rates for lower income household and for those at the top of the income distribution. He found that both are rising at similar levels and that both are affected by similar driving factors.

I believe that this is a blogger worth following as he currently teaches economics at Harvard University, and has been analysing not the large news covered by everyone else, but the details that many seem to overlook when making a decisive stance on their opinions. He argues that rather than retaining all of the complicated “taxes and transfer programs,” the US could “replace them with a flat tax” with a tax return equal to that of the overall degree of progressivity. I believe this would help ease disparity tensions as a simpler tax plan with tax cut incentives on economic progress would motivate large business owners to continuously develop and drive the economy, and  could create an “equal field of opportunity” where everyone pays the same amount of taxes.