Madison Elliott

Dr. Steffen Guenzel

ENC 1102-0015
16 March 2015
Research Dossier
Dossier Introduction
Most citizens of the United States know they have to pay their taxes each year,
usually in the form of coming directly out of their paychecks and going straight to the
national government. This system has been in play for years and most citizens do not
even bother to ask how much of their income is actually going to the government, or how
their contribution compares to other citizens contributions. This system of taxation has
been in place since 1913, so nowadays regular citizens dont think twice about the
system, they just do what they are told. Unaware there are other taxation methods out
there, some which could benefit us far more than the system we have now.
My father is an accountant, so growing up I was always listening to him work and
eventually became intrigued by what he was always doing. Naturally, my curiosity led
me to become an accounting major, and my father has been my biggest teacher. With it
currently being tax season I filed my taxes, which got me interested in the whole income
tax system and how it even works. My father is the one who explained to me that there
are several different taxation methods other than the system we have now, and some that
could be far more beneficial for citizens like us. He explained that this topic is brought up
almost every presidential election year or in any financial discussion about the United
States. Naturally, this made me want to research what are these other systems that we

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could have? And how exactly would it benefit a regular citizen like me? What are the
pros and cons of these systems and how does it compare to the system we have now? The
research I have done up to this point is very preliminary but has given me a good
understanding of the topic. Our current nations tax system is the progressive income tax,
which breaks the country up into seven different brackets of income levels. Each bracket,
from lowest to highest, has to pay a higher percentage of their income to the national
government. The lowest bracket being citizens who make up to roughly $10,000 each
year, and the highest bracket being citizens who make at least $413,000 each year.
Although the lower income citizens usually do not have a problem with this system, it is
usually deemed unfair to the citizens in the higher brackets. From this argument, the
next national tax option would be the flat rate income tax. This method is like the
progressive tax, but much simpler without the brackets and without the different levels of
taxation; every citizen pays the same percentage of their income to the government. Why
this system has never been put to action is because it is very hard for economists to
determine what that flat rate should be. Ultimately it would have to be somewhere in the
middle of the lowest and highest tax rate we have now, therefore making the poor people
pay more and the rich people play less. This is a major concern because it would be
creating an even larger gap between the classes of our country. The next tax system,
consumption tax, is different entirely from the two methods previously discussed. Instead
of being based on how much citizens make, it depends on how much citizens spend.
Money would no longer be withheld from each pay check, and citizens would no longer
have to file taxes. Instead, every good and service would already have that national tax
added onto its price. Although, this would upwardly shift all prices of goods and service

Elliott 3
in the market, citizens would also have more spending money because nothing would be
withheld from their paychecks anymore. This system of taxation is very different than
what we have now though, and could put the country into an economic shock.
All three standpoints offer very different pros and cons on the citizens of the
United States, but through my research I plan on determining which method would cause
the best outcome. Although I am an accounting major and this information is intriguing to
me naturally, it is important for everyone to understand how our national economy works
and where everyones money is going and how. Even for young college students who are
just now entering into the work force, they still have to pay taxes and should know how it
all works, and how it could even be made better.

Research Map
Research Question/Thesis: What is the best national tax system for citizens of the United
States?
Keywords: United States, federal tax, income tax, consumption tax, flat rate income tax,
national tax and citizens

Timetable:

Sunday

Monday

February
* = research conducted on own time
Tuesday
Wednesday Thursday

10 Have
research
idea in

11*

12
Research
proposal

Friday

13

Saturday

14

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mind
15

22

Sunday
1

15

22

Sunday

16
Research
Map DUE
23

DUE

17

18*

19

20

21

24 Class
in library

25*

26
Start
thinking
of what to
research-

27

28

March
Wednesday
4*

Monday
2 Digital
Paper
Trail
9
SPRING
BREAK
16
Research
Dossier
Draft

Tuesday
3

10
SPRING
BREAK
17

11
SPRING
BREAK
18*
CGS midterm

23

24

Monday

6 Pitch
TED talk

Tuesday

Friday

Saturday
7

13
SPRING
BREAK
20
Micro
mid-term

14
SPRING
BREAK
21

25

12
SPRING
BREAK
19
Research
Dossier
DUE,
Revision
Research
Proposal
26

27

28

April
Wednesday
1*

Thursday
2

Friday

8*

Thursday
5

9
Research
paper
Draft 1

3
10
Cheers 4
Charity

Saturday
4
11

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12

19

26

13
Research
Paper
PeerReview
20
Research
paper
Draft 3
27

14
Research
Paper
Draft 2

15*

16

17

18

21
Research
Paper
PeerReview 2
28

22*

23
Research
paper
FINAL
DRAFT
30

24

25

29

Annotated Bibliography
Ball, Christopher, and John Creedy. Population Ageing And The Growth Of Income And
Consumption Tax Revenue.New Zealand Economic Papers 2 (2014): 168.
General OneFile. Web. 12 Feb. 2015.

This article comes from the Journal of State Taxation and discusses trends in the
United States taxation system, focusing mainly on consumption tax and income
tax. The article discusses how multiple states have reformed their tax system and
what the pros and cons of these changes are. These states have reduced the state
income tax rate, while increasing the consumption tax rate. The article starts by
discussing the current tax system, then discussing the pros and cons of each tax
system, and ends by deciding which tax system is the best.
Although some information in this report offers unbiased details and facts about
different kinds of taxation, the author stating his opinion about what he thinks is
the best taxation method is biased information.

Elliott 6

Seidman, Laurence. The Death Of The Income Tax: A Progressive Consumption tax And
The Path To Fiscal Reform. National Tax Journal 1 (2014): 269. General
OneFile. Web. 12 Feb. 2015.
This is a book divided into two parts: the first part discussing why the income tax
is failing, and the second part discusses how a progressive consumption tax would
be the solution to this problem. The book The Death of the Income Tax: A
Progressive Consumption Tax and the Path to Fiscal Reform is written by Daniel
Goldberg, a professor of Tax Law at the University of Maryland. His book
provides much information whether the reader is a tax specialist or a beginner into
the economic world.
The author of this book is a credible source because of his high level of
knowledge and many years of experience, but this book is considered bias
because he whole-heartedly offers his opinion by saying the income tax is awful
and the consumption tax is the right option.
HYMSON, EDWARD B.1. The Debate Over Replacing The Present Income Tax With
An Alternative Tax Structure. Southern Law Journal 23.2 (2013): 181-209s.
Index to Legal Periodicals & Books Full Text (H.W. Wilson). Web. 12 Feb. 2015.
This article comes from the Southern Law Journal, written by Edward B.
Hymson. This article discusses the present tax system of the United States which
is progressive income, and if it should be reformed. The article then goes over the
different tax systems of: consumption tax, hybrid income tax, flat tax, or

Elliott 7
progressive tax. The discussion goes over all the possible positive and negative
outcomes of each tax system.
This article is the first so far that is credible and unbiased, offering valid
information but never stating an opinion as to which is the best.
POLLACK,SHELDOND.1."OriginsOfTheModernIncomeTax,18941913."Tax
Lawyer66.2(2013):295330.IndextoLegalPeriodicals&BooksFullText
(H.W.Wilson).Web.3Mar.2015.
This article named Tax lawyer is written by Sheldon D Pollack and discusses
where the income tax method came from and why our country adopted it. This
article is helpful to my research because it explains to me the roots of the income
tax, and why it was helpful 100 years ago and why it may have changed
throughout time. I am able to compare the pros and cons given in this article to
pros and cons of other articles discussing different taxation methods and go from
there.
This report is completely credible and unbiased, just offering facts and what has
happened in the past.
Graetz, Michael J.1, michael.graetz@law.columbia.edu. "The Tax Reform Road Not
Taken - Yet." National Tax Journal 67.2 (2014): 419-439. Business Abstracts with
Full Text (H.W. Wilson). Web. 16 Mar. 2015.

This article comes from the National Tax Journal and is written by Michal J
Graetz. This article explains that the United States has taken a unique tax policy

Elliott 8
path, yet never once using the value added taxation approach, an approach used
by many other successful countries. This article details a tax reform plan using the
value added approach, and using that revenue to benefit citizens in countless
amounts of ways. This article is extremely helpful to my research because it lets
me see another taxation method that could work other than the method we have in
place now.
This article is credible but biased, the author giving helpful information but
offering his opinion that the value added approach is the right approach.
Altman, Roger. "Reforming Our Tax System, Reducing Our Deficit." Center for
American Progress. N.p., 4 Dec. 2012. Web. 16 Mar. 2015.
This article discusses the current state of our economy and why changes must be
made. The whole article thoroughly explains to secure our nations financial future
we need a plan that combines progressive, revenue-enhancing tax reform with
large spending cuts that do not burden the middle class, poor, or seniors. The
authors of this article do not offer a new tax method, but rather change the way
the current income tax method is done so that it would produce a more beneficial
outcome.
Jones,RitaC.,JohnF.Thomas,andTeresaK.Lang."IncomeTaxReform
AndTheFlatTax."InternationalJournalOfBusiness,Accounting,&
Finance6.2(2012):1.PublisherProvidedFullTextSearchingFile.Web.
23Mar.2015.

Elliott 9
Thisarticlecomesfromanacademicjournal,theInternationalJournalof
Business,writtenbyRitaJones,JohnThomas,andTeresaLang.Thisarticle
discussesreformsonthecurrentincometaxandexplainswhattheflatrate
incometaxisandhowitwouldwork.Theauthorsallagreethattheflatratetax
incomesystemwouldbethemostreasonablereplacementtothetaxsystemwe
havenow.
Thisarticleiscrediblebecausetheauthorsareallexperiencedinthisfieldand
havemuchknowledgeonthesubject.However,thearticleisbiasedbecausethe
authorsexpresstheiropinionsonwhattheybelieveisthecorrecttaxsystem
wouldbe.
Interview with Accountant Brent Elliott (TBA- not conducted yet)
Brent Elliott is a well experienced and highly knowledge accountant and CPA. He
graduated from the University of South Florida and got his masters in accounting
there as well. He began working in a public accounting firm where he stayed for
almost 10 years, and then he moved onto a private accounting firm where he has
been for almost 10 years now. Brent is a credible source because he has worked in
the field for many years and has done much research and study regarding
economics. He also does the taxes of many friends and family so he stays up to
date on the tax system every year.

Bohek, Radim, and Jozef Zubrick. "A Flat Tax Reform In An Economy
With Occupational Choice And Financial Frictions* A Flat Tax Reform In

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An Economy With Occupational Choice And Financial Frictions." Economic
Journal 122.565 (2012): 1313. Publisher Provided Full Text Searching
File.Web.23Mar.2015.

Thisarticlecomesfromanacademicjournal,theEconomicJournal,writtenby
RadimBohacekandJozefZubricky.Thearticlestudieshowaflatratetaxincome
systemwouldworkwithoureconomyandwhatitwouldchange.Thearticle
showsthattheflattaxwouldbejustasefficientasthesystemwehavenowand
thatitwouldimprovewelfare.
Thisarticleiscrediblebecausetheauthorsareallexperiencedinthisfieldand
havemuchknowledgeonthesubject.However,thearticleisbiasedbecausethe
authorsexpresstheiropiniononwhattheybelievethecorrecttaxsystemwould
be.

SOLOMON,ERIC"TheProcessForMakingTaxPolicyInTheUnitedStates:
ASystemFullOfFriction."TaxLawyer67.3(2014):547558.Indexto
LegalPeriodicals&BooksFullText(H.W.Wilson).Web.23Mar.2015.

Thisarticlecomesfromanacademicjournal,theTaxLawyer,writtenbyEric
Solomon.ThisarticledescribestheprocessintheformationoftheU.S.federal
taxpolicyandhowitallbegan.Thearticleexplainshowandwhyitissodifficult

Elliott 11
forthegovernmenttomakechangestothetaxsystem,andwhatwouldhaveto
happeniftheydidactuallymakechanges.
Thisarticleiscredibleandunbiased.Theauthorandacademicjournalareboth
crediblebecauseitisawellknownjournalandtheauthorisveryexperiencedin
thisfieldofstudy.Itisunbiasedbecausetheauthornevervoiceshisopinion,
ratherstatesthetruthandfacts.