...That’s EXACTLY what a flat-rate would do!
Example, income tax:
Let’s say the tax rate is 10% (for simplicity’s sake).
A small business makes $1000, so $1000*.10 = $100.
A large business makes $10 Million, so it pays $10M*.10 = $1 Million dollars.
This has the added advantage of being both uniform and simple, and therefore decrease the ‘loopholes’/exceptions to 0. Also, any tax-dodging would be MUCH easier to find. (The IRS could be VASTLY reduced in size... even to the point of disbanding the organization, probably all it’s operations could be taken over by the FBI).
I like the flat taxes & the fair tax etc. Here are the things I was hoping to address:
Businesses & individuals making under 2 million annually pay no direct taxes, facilitating job creation where new jobs are usually created.
Too Big To Fail — any sector where 85% of the revenues are collected by 4 firms... this is not a monopoly but it is unhealthy. I want to give little guys a huge relative advantage in those sectors. As a plus, if the Mega-Corps realign & spin off sub-divisions, this will create jobs.
US Wage deduction — while the big boys will be hit with huge taxes, they can avoid large portions by paying wages to DOCUMENTED workers. This encourages job creation.
I think this would create a snowballing surge of job creation and could return a great many manufacturing jobs to the USA.