The flat tax -- an income tax with a single tax rate -- is the subject of a lot of criticism since Steve Forbes made it the central issue of his presidential campaign and Jack Kemp's tax reform commission issued its report in January.

Some of the opponents are spreading misinformation--wrongly claiming the flat tax must worsen the budget deficit and isn't progressive. However, flat-tax supporters hurt their own cause when they refuse to deal with some of the legitimate public-opinion challenges the idea faces. For example:

• Although some supporters, counting on faster economic growth and reductions in government spending, claim everyone will get a tax cut, some middle-income taxpayers will pay more -- how many and how much depending on fine-tuning the plan.

• The flat tax would benefit the wealthy, a fact which is politically inconvenient but beside the point, since the purpose of tax reform is to make the system more efficient and pro-growth.

Supporters need to deal with these objections, because the case for a flat tax is compelling, based on its simplicity and -- more importantly -- its effect on investment. By reducing the tax on investment to zero, the flat tax would produce a huge surge in investment and capital formation.

Source: Rob Norton, "The Wrong Way to Sell a New Idea," Fortune, February 19, 1996.