Gross Income______
x
0.08
pay this amount ________
Gross income minus 8% tax would be negative income for many businesses. An 8% tax could easily be a 50% tax on net income for many self-employed. Then add in another 15% (roughly) self-employment tax (goes to SS & Medicare) and things would get worse.
The tax code is too complex. But SOME of that complexity is driven by life.
Most, of course, is driven by politicians wanting to control others in exhaustive detail...