Quote:
Originally Posted by ponrauil
If it's the same % for the poor in both cases, and the rich pay the same % of taxes as the poor with the flat tax system... how does flat tax increase state revenue?
Ponrauil
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Several reasons:
1) Exemptions are heavily reduced
2) Tax fraud is minimized
3) The 12%-15% of total tax money is saved by down-sizing the tax processing apparatus of a state which is nothing but a huge money eating machine
4) Laffer curve
And here, some more arguments:
http://www.heritage.org/Research/Taxes/bg1866.cfm