The current tax code is a byzantine jumble defined by loopholes and special interest carve-outs. It throws taxpayers into a 60,000-page mire of dead weight, red tape, inefficiency, loss, cost, frustration and fear of prosecution. While the average American taxpayer spends 26.5 hours preparing and sending in taxes, companies and wealthy people hire teams of accountants and tax attorneys to game the system.
Under a flat tax, individuals would have the option to file their taxes in just five minutes on a form the size of a postcard. Small businesses could concentrate on expanding their business rather than jumping through hoops in the tax code.
The simpler system would end double taxation on savings to help boost job growth. It would rationalize the tax code, and the billions saved in compliance costs and man hours would be a major stimulant to the economy. In short, the flat tax is a private-sector driven boost to the economy, as opposed to trillions of dollars wasted in failed debt stimulus.