Re: Flat Tax?
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Define gross income. Currently we have things called "passive income", "unearned income", "interest income", "dividends", etc.
Define "business expenses". Currently we have amortizations, allocations, contigency funds, set-asides, depreciation, etc.
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That's what I want Steve Forbes to define, or at least to address. Anyone know if he has done so anywhere else?
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I doubt it. If you are really interested in this idea you should look the websites of conservative think tanks. While I doubt anyone has come up with a magic system that would drastically simplify the tax code, there might be some good ideas out there that could help things a little. But the problem with discussions about tax simplification is that most proponents of tax simplification, like Forbes, actually want to do more than just simplify the tax code. They want to end progressive taxation, but don't have the political cajones to come out and say it, so they promote a flat tax as a magical way to simplify the tax code.
I don't necessarily have a problem with a flat tax rate, but it is really a completely separate issue from tax simplification. People like Forbes who dishonestly pitch the flat tax as a way to simplify the tax code inhibit productive discussion.
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