I was very ecumenical in my remarks. I pointed out the flat tax and sales tax (and even, at least in theory, the value-added tax) all share very attractive features.
- A single (and presumably low) tax rate, thus treating taxpayers equally and minimizing the penalty on productive behavior.
- No double taxation of saving and investment since every economic theory agrees that capital formation is key to long-run growth.
- Elimination of all loopholes (other than mechanisms to protect the poor from tax) to promote efficiency and reduce corruption.
- Dramatically downsize and neuter the IRS by replacing 72,000 pages of complexity with simple post-card sized tax forms.
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