The world is flat Columbus! When Christopher Columbus set sail to prove the world wasn’t flat he was met with derision, ridicule and blasphemy.
Can a flat tax really be flat. In its purest form yes, if everyone does pay the same exact rate and there are no exceptions, no exclusions, no returns, no store credit, no special breaks, no special interests… you get the idea. Let’s assume the rate is 20%. As soon as the words leave the mouth the equal versus fair arguments appear. The “rich” would pay less. That is not fair. The middle class would most likely pay more. That is not fair. Those with low incomes would suffer even more strain. We can’t have that in a civilized society. Then there are the different types of income. Passive investment, dividends, capital gains and ordinary income. So unless all income and all deductions are to be treated equally the tax can’t be flat. What about the favorite deductions like mortgage interest and charitable contributions. We can’t do away with those. America was built on home ownership and charity. So, unless all deductions are treated equally the tax can’t be flat.
By the way. If taxes could be mailed in on a postcard because of tax simplicity what would happen to the unemployment rate for the entire profession and support built around taxes. No IRS. That’s probably a good thing. No tax preparers, no enrolled agents. no tax attorneys, no tax courts, no assistants, no clerks, and on and on and on.
Maybe the World isn’t so flat after all.
