My Enrolled Agent Conservative friend is a realist. This is my interpretation but the Oinker's (my term) on K-Street and the House and Senate love doling out the goodies in the code. As she said, Fair Tax never, In her humble Opinion a Flat Tax as an optional form to all your forms where you file a "X" percent with no deductions is the only way for a Flat Tax to gain traction.
So my Solution, an alternative form 15% Flat, Make Cap Gains 15% again equal to Div's and make Corp. Taxes 15% flat no b.s. but it may get sticky with depleation allowances and yes I haven't thought it through.
With everything @ " 15% " we set a new bar that everyone has to meet. IMHO Business would flock here faster than..... something about a tin horn :-)...
1. A generous exemption for earned income (wages and taxes) of:
$14,000 for single taxpayers
$28,000 for married/registered domestic partner couples
$21,000 for single head of household with legal dependants
$9,000 per legal dependent in household
2. All earned income above the exemption amounts will be taxed at a flat rate of 18.75%.
3. Eliminate all other tax loopholes, the alternate minimum tax, gift tax and the FICA tax.
4. Eliminate taxation on bank account interest, stock dividends and capital gains.
5. Tax corporate income at a flat rate of 13.75%.
The result is a 75% reduction in yearly compliance and economic opportunity costs due to the income tax. So instead of US$1 TRILLION per year in compliance and economic opportunity costs, we free up US$750 BILLION per year for more productive purposes.