With expensing, the first tax is abolished. Saving is, in effect, deducted in computing the tax."

The following list summarizes the key aspects of the flat tax (Rabushka, 1997):

1. "The flat tax, in effect, removes the tax code from the economy. No individual, household, or firm needs to take into account any tax complications that arise from their economic decisions and activities. The tax system is designed for the sole purpose of collecting revenue, not for social manipulation of individuals or firms.

2. The flat tax is pro-investment because it permits 100%, first-year writeoff of all investment.

3. The flat tax is non-discriminatory, in that it treats every individual, household, and firm exactly the same. It is fair in this regard. This is an important point of principle, namely, that of enhancing individual economic freedom. The flat tax does not punish success.

4. The flat tax is the essence...
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