The Congressional Budget Office assesses potential changes in the tax code. It is not really a transparent process. For those who agree that there should be a balanced budget, there is not an agreement on how to balance it. Cuts or spending? Whatever, lets see what the lobbyists say. Nooo! Not that I expect any sort of answers, and just for fun between friends, I wonder what the effect of a flat rate tax of all income of twenty percent would be? There would be a standard personal deduction of fifty thousand dollars, and no other deductions.
It would simplify tax code, and save money filling out the forms. Of the twenty percent, ten percent would be for social programs. The other ten percent would be to run the government.
The same twenty percent would also apply to business earnings. I think that there would still be lots of rules on business deductions. Not sure how that would all work out. If I work, I expect health care from my employer. So I would have to expect that would be a business expense for my employer.
Not that I am suggesting such a thing, just curious on what the potential effect would be.
[ note: see comments for responses ]