Written by: Dr. Lynn Reaser
Q: Is a federal flat tax a good alternative to the current progressive income tax system?
A: No. Most Americans are not willing to accept a system where higher and lower income earners would pay the same rate. They do support a major simplification of the current 3.4 million-word tax code. Broadening the tax base by eliminating the labyrinth of deductions and exemptions could both reduce all tax rates and raise revenues. The corporate tax rate should be reduced from the present 35%, which is the highest in the world. The double taxation of capital gains and dividends (currently taxed as profits at the company level and as income when distributed to shareholders) should also be ended.