simpler than the current tax system. The new system would tax only the income derived from individual labor, after allowing for personal exemptions. There would be no deductions. The fla t tax would tax businesses' net cash income at the same rate that applies to individual income, while eliminating all the apical tax provisions that penalize some businesses while benefiting others. One big problem with the current system is that it costs from $150 billion to $300 billion annually to operate. The flat tax, by contrast, would cost about 1/5th as much once fully phased in. These cost savings are equivalent to more than a $100 bil lion tax cut for the American people. No tax system is perfect, and no tax reform proposal is without flaws. In the end, the flat tax's greatest strength is that it would remove the current tax system's depressing effect on the economy. This over time, could make up for all the problems me ntioned above. But before it can pass the problems must be addressed....
