A Flat-Rate Tax
I am in favor of a flat-rate system of taxation, a system that applies fairly and equally to all, regardless of income. I include corporations and churches in this system as, in some aspects, they are legally regarded as individuals.
The tax rate might be as low as ten or fifteen percent, whatever is needed to finance the government. There would be no deductions, exemptions, or exceptions. This also means no tax credits for any reason. By removing even the possibility of loopholes, all persons would pay their fair share. Who would mind paying if they knew everyone else was paying, too?
There are groups who oppose such a plan. Obviously, anyone making money from the present tax system is opposed to change. The Internal Revenue Service, for example, could be almost eliminated. Tax returns would be needed only for the self-employed and those having income other than wages and salary, such as tips or gambling income. All others might send in a simple affidavit stating that they had no unreported income. The IRS would have little to do, and could be reduced to a fraction of its present size and budget.
Employers would deduct and pay the flat-rate tax as they now do under the present system. Because the percentage would be the same for everyone, it would be far simpler to do. (No W-2 forms for openers).
High-income persons with tax shelters form another group opposed to tax reform. Many of these people and corporations pay little or no tax year after year. Because this group finances many political campaigns, they exert influence far out of proportion to their numbers. Because many politicians are in this category, it is unlikely that they will bite the hands that feed them, or vote away their own favored tax situation. With these groups and the IRS opposed to any real changes in the tax structure, I see little hope of reform, but it is nice to dream.