04/14/05: No answers, but some comments on a flat tax

Posted by: tongue

If you are going to talk about a flat tax, you need to define it first -- if you are excluding any amount of "income" from tax, you no longer have a pure flat tax -- even if only taxing above $10,000, you have two rates -- O percent on first $10,000 and whatever the rate is above that.

Even eliminating most of the credits and deductions would not necessarily simplify the tax law -- many of the complications concern defining income. Not an issue for most wage slaves, but big issue for anyone operating a business. Again, the social security tax on wages is simple enough, but look at the SECA tax -- there you are working with net income from self-employment which already takes into account any number of deductions in determining income.

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