OTHER BENEFITS OF A FLAT TAX
January 24, 1996
Much has been said of the benefits of a flat tax in terms of raising economic growth. But there are other direct benefits which observers caution should not be overlooked.
- The simplicity of a flat tax would eliminate nearly all of the 5.1 billion hours corporations and individuals spend in complying with IRS instructions.
- We'd all be more certain of the tax consequences of our financial choices and make fewer costly mistakes.
- Federal elected officials would be discouraged from endless, year-to-year tinkering with and changing the tax code.
- It would have a chilling effect on the lobbying industry in Washington, which largely exists to seek tax advantages and fend off tax threats to corporate clients.
- With one flat rate for everyone, bracket creep due to inflation would be eliminated.
Source: Gary M. Galles (Pepperdine University), "Flat Tax Gains For All," Investor's Business Daily, January 24, 1996.
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