By far the best information I have found on the Flat Tax was found at Entrepreneur. In a nutshell it tells us that the best thing about a flat tax is that it will be much simpler and according to its supporters, the flat tax would decrease the complexity of the current tax system and should decrease the tax liability for many taxpayers.
Hall and Rabushka (HR; 1995, pp. 92-93) concluded “The current personal and corporate taxes tax wages heavily and business income lightly. The flat tax would reverse this inequity and benefit a great majority of Americans, whose income comes almost entirely in the form of wages.
Those who read the comment by Mark on the post concerning Fair Tax, Flat Tax, and IRS see that there are those who are vehemently opposed to a ‘flat tax’ for the very reason mentioned above. As a matter of fact, if one should Google ‘Flat Tax’, he or she soon realizes there are as many against the idea as those who support it.
I find that another reason for the disagreement seems to be a problem that seems to have caused dissension among liberals and conservatives for years, ie class warfare. One segment of our population feel that the rich in this country are all Republican and never pay their fair share. They believe the rich should be taxed at a higher percentage rate than the poor.
Who actually makes up the rich is not always known by those who are arguing, however, and facts just never seem to change anyone’s mind on the left. They are convinced that only Republicans are rich and only rich people avoid taxes.
Marilyn Savant recently was asked about this and answered in Parade Magazine. Amazingly enough, they printed her answer:
Here’s the question from Marilyn’s column:
Q: Is it true that the rich pay very little tax?
A: No, and this is the myth, more than any other, that has created the unwarranted and destructive dissension among the so-called economic classes in this country. The wealthy pay a truly stunning amount of tax, and there are virtually no exceptions. Anyone who thinks otherwise has been misguided.
Regardless of what the rich are paying now and regardless of and who the rich are in this country, let’s look again at a Flat Tax that could replace our current system.
To read the case in favor of a Flat Tax you might want to read Montreal Economic Institute’s Why A Flat Tax Would Be Fairer and More Efficient.
Personally, I remain in favor of The Fair Tax.