Aug 02, 2012 5:21 PM
What we need is a Progressive Flat Tax (see the 10-25 Plan in "Fixing Everything").
Businesses would withhold the 25% flat tax, avoiding the need for individuals to file any annual income tax forms, not even a postcard.
Separately, monthly cash payments would be received that bring everyone above the poverty line. From there they keep 75% of whatever they earn. For those who now pay taxes these payments would replace all tax deductions. Effective tax rates would be far more progressive than the current system, but fair to all.