privacy. Now that we got through the benefits for the individual taxpayers, we would like to mention about the benefits for businesses.A benefit that businesses would enjoy is this system would end penalizing double taxation of business income and would encourage increased savings and investments needed for development and expansion. Since flat tax would end individual capital gains and dividend taxation, it would encourage more corporate investment. This system would also eliminate one of the biggest accounting nightmares and numerous depreciation schedules that can stretch up to 40 years by allowing a 100 percent first year spending on new business investments. This system also eliminates the large cost of keeping track all interest and dividends paid out. This is possible because income would only be taxed at the business level and corporate income would not be taxed again when interest and dividends are paid to the individuals. It also would get rid of the growth discouragement caused by high marginal tax rates now faced by expanding businesses. And finally it would eliminate the corporate Alternative Minimum Tax or AMT. AMT forces many businesses to figure out their taxes twice under two different methods. The flat tax would reduce the complicated taxation of multinational corporations and it would only apply to domestic operations of all businesses, no matter if they are domestic, foreign, or mixed ownership, only the revenue from sales of a product within the U.S. and the value of products at export would be reported. In conclusion, the current tax system has been reformed and played with for the last eighty years, playing with it only made it more complex and harder to understand. The time has come to try out a new system that is easier to understand and helps out the people who work hard for their money. Using the flat tax is not a crazy idea. In fact, except for the income tax, flat tax is already being used. The ...
