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Unread 11 Nov 2005, 20:33   #31
dda
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Re: So if you had to choose...

In the US, one of the arguments in favor of the flat tax is that the rich would actually pay more than they do now.

While the tax rate would be lower, there would be no deductions which favor the rich under the current system. (There would be a threshold income before the tax would start as well to protect the poor).

There is also an argument that there would be less tax evasion which costs the government many billions of dollars each year.

The tax system wouyld also be simplified, there would only need to be a very short form for everyone. How much did you make? What is 14% of that? (for example) How much did you have deducted dluring the year? Pay too much? Thanks we'll send you a check. Pay too little? Cool, send us a check.

It probably would not live up to expectations because, even if implemented, the politicians wouldn't be able to keep their hands off of it. They would want to bribe this constituancy and that with new deductions and tax incentives and pretty soon it would be back to the same problem.
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