The greatest benefits of a flat tax would go to lower-income families. Thus, those who say they are concerned about helping the less fortunate should be among its strongest supporters.

Among the immediate, direct effects of implementing a flat tax:

• Since all income would be taxed, there would be no loopholes for the rich, and a person with 10 times the income of another would pay a tax at least 10 times as high.

• Deductions and exemptions, most of the benefits of which accrue to the wealthy, would be eliminated.

• The tax burden would shift from poor and middle-class wage earners to those with higher incomes.

• Simplifying the tax code would eliminate the main business of special interest lobbyists in Washington -- getting preferential tax treatment -- and politicians could not exploit the tax code to generate campaign contributions.

• The working poor would pay no tax until well above the poverty line -- thus a family of four would pay no tax until its income reached $33,300 (under the Armey-Shelby plan).

• Because of the personal allowance and dependent allowances, the flat tax would be progressive.

In addition, a flat tax would have long-term benefits for low-income wage earners and the unemployed: The economy would grow faster, which would raise wages and create more jobs; and it would be easier for people of modest means to accumulate savings, since the flat tax would eliminate the tax on interest earned by savings made from already-taxed wages.

Source: Daniel J. Mitchell, "Why Liberals Should Support the Flat Tax," F.Y.I., No. 85, February 7, 1996, Heritage Foundation, 214 Massachusetts Avenue, NE, Washington, DC 20002, (202) 546-4400.