The flat tax plans I've heard are faulty. The first thing most people offer is "there would be no deductions." I offer that two people who each make $100,000 a year would pay the same amount. They agree. I then offer that one earned his in wages, and the other spent $30,000 on materials to make his money.
The inequity of both paying the same amount in taxes is obvious. However, they most often agree that materials would be deductible.
You've now got a hole that can't be plugged. We already have a tax structure that allows deductions, so all you're really talking is tax rates and what would be deductions.
