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Econometer: Is a flat tax folly or foolproof?


Sunday, November 6, 2011

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Kelly Cunningham, National University System

Answer: Yes

The simplicity, fairness and transparency of a flat tax system are vastly preferable to the current monstrosity. Ending the widespread and corrupt practice of inserting loopholes and preferences into the tax code for politically connected entities would be a much more equitable system for everyone. Eliminating deductions, shelters, exemptions, and other distortions in the tax code that upper-income taxpayers far more often utilize could actually generate more revenues. Stronger incentives for productive behavior would also result from lower taxes on work, savings, investment, and entrepreneurship, with decisions made on the basis of good economics rather than clever tax planning.