At the risk of being repetitious, I want to call attention to the fact that the tax loopholes, especially the cap on SS contributions, are extremely favorable to the rich. After all, poor people can't bribe congressmen to write loopholes in the tax laws.

The FLAT TAX circumvents this crap. We need a ten page income tax code. In brief it would work like this.

Each taxpayer would be required to pay the SAME percentage of his income as tax. There would be NO DEDUCTIONS for any reason whatsoever. There would be NO DEPLETION ALLOTMENTS. NO CAPITAL GAINS. There would be a modest personal exemption for each person, say $6,000.

Here are some examples based on the rate of 25% (chosen at random) and a $6,000 personal exemption.

Single person: Income 50,000; Exemption 1 * 6,000, Taxable income $44,000, Tax $11,000

Married couple: Income 40,000; Exemption 2 * $6,000, Taxable income $28,000, Tax $7000

Married couple: Income 60,000; Exemption 2 * $6,000, Taxable income $48,000, Tax $12,000

Married couple + 2 dependents: Income $80,000; Exemption 4 * $6,000, Taxable income 56000, Tax 14000

Married couple + 2 dependents: Income $100,000; Exemption 4 * $6,000, Taxable income $76,000, Tax $19,000

I want it clear from the beginning that this is the TOTAL INCOME TAX, including Social Security, Medicare, etc, etc, etc. Also, don't waste my time telling me that 25% is too low a rate. It was just used as an example. The actual rate would depend upon total personal income and total government expenditures (DUH).

Today, the rich pay taxes at roughly a 25% level because of all of the special breaks, loopholes, etc. The middle class pays a much higher rate. The FLAT TAX, as I envision it, would close all loopholes.

Also, since it is neither progressive, nor regressive, it would not help a bit to redirect income to a minor, since the tax is exactly the same. It depends only on two things: The total income and the total number of exemptions.

I would also abolish all forms of tax shelters, tax exempt bonds, etc. Existing tax-free bonds would still be tax-free, but no new ones could ever be issued.

Simple, reasonably easy to implement, absolutely fair.

David F Mayer