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Originally Posted by Yakk
All you no deduction hawks:
Imagine you are a trucker.
You recieve income for shipping goods.
You use that income to buy gas and upkeep your truck.
You get paid 200,000$ /year to ship goods.
The gas and the truck costs 170,000$ /year.
Under the current system, your income is 30,000$/year. You pay, say, 5,000$ in income tax.
Under the new system, with no deductions and a 15% flat tax, you'd pay 30,000$/year in tax. And starve.
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Sorry to butt in this way but in this example you would end up paying $4500 in taxes as the 170,000 is a cost of doing business (expense) not a deduction...Sales-cost of goods sold-other expenses=income blah blah blah
A flat tax would not change that