I wonder if a flat tax would stimulate a black market?Any tax system will have those who find a way to work around it. Such is the nature of the beast.I see one impediment and one reasoning flaw with what's commonly called "flat tax." BTW, since this disussion began with a reference to the "Fair Tax," we should note that there's no relationship between that and a flat tax, which is still income based.The impediment you've already mentioned. Everyone's idea of a flat tax is "flat except for [adjustments which benefit the speaker]." Teamed up with "money is speech" and the resulting enormous clout of affected groups (can you say "real estate lobby"?), it's a long row to hoe.The flaw is that people think a flat tax would be simple. They don't realize that the vast majority of the current law is devoted to defining income. Any income-based system is going to retain some level of complexity unless you go to a tax on gross receipts.PhilRule Your Retirement Home Fool
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