What would happen if we throw out the entire tax code, replace it with a single, flat tax rate for every adult citizen, with zero loopholes, and then institute some sort of welfare mechanism for those who can't afford to pay?
Defining what 'income' really is or what an allowable 'expense' is, not so easy. Should two farmers helping each other out 1099 each other? Can a wealthy but chronically ill executive write off his RN wife's presence on a business trip?
But most of the time, in the course of getting passed, proposed simplifications become additions instead of replacements. It's depressing.
To me, it's like the handwaving you hear about simply using a consumption tax. No doubt, people would find an infinite number of ways to game the system toot sweet.
Of course, implementing socially desirable behavior via tax law just throws even more complexity in the mix. Generally, I'd say that the larger the government share of GDP, the more opportunity for craziness. If your underlying culture doesn't reign anything in, mayhem results.
...and then all the corner cases go to tax court.
Thing is, life is more complicated than law.
Now, 25% of what?
Oh wait that’s the problem ain’t it. As the article notes in extreme detail there’s a lot of ways to argue about what is and isn’t income.
Then the corporations and the state would together dictate what you had to do to be eligible for the welfare.