Implementation of a “flat tax” on the income rate
One tax reform issue that needs to be addressed is the amount of revenue that the federal tax system must collect. When there is a disproportion between income and expenses, federal debts and deficits will increase and reach unsustainable limits. Policymakers must evaluate fiscal policies and find ways to ease fiscal pressures. Implement a flat income tax at a rate of 18% for all Americans. Having a uniform tax for all Americans will ensure that all citizens pay the same taxes and that there are no biases. However, a rate of 18% is too high for citizens considering that citizens have different incomes. The implementation of this policy will not be beneficial to the government as it would only benefit high income people.

The working class in America pays too much in taxes compared to cooperation and millionaires. Most large, profitable corporations pay little in taxes compared to middle-class citizens. If corporations and the wealthy pay their fair share, the nation will allow itself to cut taxes for most of its ordinary and average citizens. This can also be boosted by cutting waste in arms, military and warfare. On the contrary, taxing high-income people more will give the government more money to waste. It also acts as a deterrent for businesses and individuals to earn money. This could lead to a reduction in investment by investors. In the past, high taxes slowed the economy and led to stagnation. Reducing business taxes boosted revenue. However, the tax increase led to a reduction in spending and investments by companies as they tried to cut their tax expenditures, resulting in a decrease in revenue for the government.

Implementing the reform of the Democratic Party
There is an unbalanced share of individual wealth in the US Strong action is needed to restore just income distribution. The middle class and the poor pay a lot in terms of federal taxes, which is due to the injustice of state taxes. A system-wide tax reform should be implemented to simplify the tax system. A fiscal policy must be implemented to eliminate the loopholes. Democrats hold the idea that taxes should be raised for the upper class and lowered for the middle class. The tax code and the system need an overhaul. America needs a code that creates wealth for people and rewards work and not a code that creates wealth for those who have it. $ 200,000 should be set at the income level where Americans should pay the highest taxes. This will pave the way to cut taxes for the rest of the citizens. Increasing taxes for wealthy Americans will lead to a 98% reduction in taxes, where most families will be able to cope with their daily economic challenges.

Proposal for tax reform of the GPO model
A draft proposal from the Republican Party proposed that the corporate income tax should be replaced by a destination-based cash flow tax (DBCFT). This would help the cooperative income tax and the United States’ global tax system eliminate the distortions it caused. The world system will be replaced by a territorial tax system in which companies will be taxed according to the location of their earnings and not according to their corporate residence. Businesses in the US that make foreign profits would no longer pay taxes on their earnings when they return to the United States. This tax system would also allow a free flow of capital back to the US by removing the lockdown effect. This would encourage companies to expand and invest operations around the world.

Tax rate change
The plan is to cut taxes at all income levels, but high-income taxpayers will receive the biggest cuts. The average tax bill will then be reduced by $ 1,810, increasing revenue by 2.5% after taxes. The highest 1% taxpayers would then benefit from 3/4 of the tax cuts, while the highest taxpayers would see a decrease in the 16.9% tax cut after tax revenue. Middle-class households will receive an estimated 0.5% tax cut after tax revenue, while the poorest Americans will see their 0.4% tax cut drop after tax revenue. The plan would see a reduction of 33% in the maximum rate of income from individual taxes, 20% in the company and 25% in partnerships and sole proprietorships. This would reduce the child tax credit and standard deductions.

A cash flow excise tax would replace corporate income tax, which would apply to all companies, so interest on companies would not be deductible and investments would be deducted immediately. This would result in an adjustable border cash flow tax excluding export earnings and purchased imports would not be deducted. These marginal tax rate cuts would lower tax rates on new investments, increase incentives for the United States, and reduce tax distortions on capital allocation. However, interest rates would increase in the event of an increase in government indebtedness and would cause a displacement of private investment. This would offset the positive effects of the plans on private investment. To counter the ramification of deficit tax cuts, federal spending needs to be cut.

VAT implementation
National consumption tax (VAT). It is a lien on the difference between the purchase of goods and their sales. Generally, tax is calculated on a business based on its sales, a tax credit paid on its purchase is subtracted, and the difference is sent to the government. The income of multinational corporations residing in the United States must also be taxed. Discretionary and mandatory spending must also be reduced, leading to a reduction in deficits and debts. Reducing federal spending on health care and reducing revenues below the baseline amounts would offset the deficit reduction. This would lead to an increase in domestic investment, national savings and capital stock would increase.