Q, But you're wrong. A true flat tax based on income, from whatever source derived, with no deductions, and/or exemptions does not do that. It gives equal economic opportunity to all. The income tax codes of today are written with "fairness" in mind with the graduated aspect, and with social engineering in mind through the deduction and exemptions allowed. A true flat tax would put an end to that. In Maryland today, more than one third of "income" is not taxed {The numbers are in the billions} due to deductions and exemptions given by politicians on any given day to those who ask and/or demand "fairness". Meanwhile, those who pay taxes on the remaining two thirds must pay a higher rate of taxation in order to make up for the "loss" of revenue due to deductions and exemptions. Make ALL pay the same rate on income from whatever source derived. Why for instance, should millions {billions?} of dollars of income made by interest and/or stock dividends not be taxed at the same rate as the income of a ditchdigger? No deductions and/or exemptions. Peace and love, George.
You said: "But you're wrong. A true flat tax based on income, from whatever source derived, with no deductions, and/or exemptions does not do that. It gives equal economic opportunity to all."
Now I say: Yes it does. A change to an absolute flat tax with no exemptions, for example, would probably reduce money given to charity from the current system's levels. If you're going to take money from people according to a certain plan, it will affect how people will spend their money.
But I agree with you in that it's the fairest (there's that word again) of all possibilities. In this spirit, it's time to get rid of the church tax exemption, and the exemptions allowing the 7 of the top 200 corporations to pay no taxes (including GM and Texaco).