I have heard this argument raging all over for over a decade, and the simple truth is both sides have valid points.
1) Either would be better than the current progressive income tax.
2) Either would break the power of the IRS (something that MUST be done)
3) Either would put a financial limit on government it does not currently posses.
For myself, I have bounced back and forth between the two, but now I’m a 100% supporter of the Flat Tax, and here is why…
I have often heard the Fair taxers claim that their system is simpler than the IRS… 100% true! BUT it is still 40 pages filled with rules and exceptions that give bureaucrats all sorts of wiggle room, and if I know one thing, it is that if you give a bureaucrats wiggle room it will result in a new government agency!
The original Tax code was only one page, yet it has grown to well over 70,000. in the last 102 years what is to stop the Fair tax code from turning into the exact same behemoth with a different face?
I have yet to get anything like a good answer for this.
With the flat tax the entire tax code could be printed on a post card.
PROPOSED US FLAT TAX CODE:
Every citizen will pay a MAXIMUM of 10% of their earned income to the government no matter its source. Be it paycheck, return on investment, or otherwise. If you are payed in cash it is your responsibility to pay your taxes and keep records proving your income and payments. Failure to do so will result in a fine of no less and no more than the difference between your actual payment, and the national average taxes for whatever job you do. No exceptions, no deductions, no loopholes, no tax credits, ever.
There is no wiggle room there. No place for politicians and bureaucrats to play the games that have put us in the mess we are in. No exceptions, which are always used to justify “just one more exception”….
The Fair tax might be nice, but the Flat Tax is orders of Magnitude harder to monkey with. And lets face it. Politicians are monkeys who just cant resit turning knobs and flipping switches just to see what they do.
FLAT TAX all the way!