What are the downfalls of a flat tax.?
344741
Preferential tax rates for capital gains and dividends encourage people to invest and these investments are beneficial to more people than just the investor.  If, for example, a taxpayer buys stock in a company the company - and its workers - will benefit.
260340
Government like people have good and bad traits.  The taxes also pay for the schools, roads, services, courts, police and many more services that we used daily without knowing it.  We usually have to be more active politically to get the government to change.
202142
Eliminate corruption and politicians. Put taxes to legitimate use.  It's a simple formula but i think it will work.
866603
Never mind. North Sea oil is running out. Public pensions and the NHS and education are going to break the bank.\n\nCouncil tax will, in 2 years' time, turn into an American-style property tax: 1% per year of actual market value of your home.\n\nIncome tax -- stealth taxes -- shall rise. Get ready to be poor.
877526
What would those be???\nDeath and taxes???
667154
I'm still waiting, but it seems that when they are put to facts - they are remarkably silent.  I'll keep my fingers crossed that you get an answer but - I'll take a shot at it:\n\nYou will get to pay more taxes so that you end up making less money and since they say money is the root of all evil - then you will never get a chance to be evil...\n\n(I know it sucks, but it's the best I could do).  =0)
441024
The economy generally doesn't include tax revenue. The reason it's bad is that it takes the tax burden off of the 5% who control 95% of the money, and puts it squarely on the middle class.
1079484
1)  War on Terrorism, ignoring it only makes it worse, we have to finish it and it might take decades.  By this I mean the war on extremist in Islam but not the great Islam culture or religion itself just the extremist.\n\n2)  Health care; not a generalization but the elimination of a real shortage problem.  That shortage of staffing and facilities causes great price increases and reduces access to health care that is needed.  We need to recruit, educate and train more health care pro's...big time.\n\n3) Social Security; no reason I should pay $9k a year into a system for 40+ years and get so little return.  \n\n4) The archiac tax system needs to be replaced with a graduated flat tax....0 - $10k no taxes, $10.1 to $50k a 10%, $50k to $125k at 20% and over $125k at 30% ought to do it.\n\n5) Campaign finance reform; the issue is starting to tread on free speech and that can't be allowed to happen to the people of this great country.
594288
First, I disagree with your postcard statement.  It is going to cost the government a lot of money to collect tax given the current way things are managed and the available resources.  Quite frankly, things are not 100% technically advanced which leads to reduced efficiencies.  However, e-filing continues to set records within the IRS helping to alleviate some of the cost.   Redesign to put forms in "postcard" form would cost far too much.\n\nAs far as flat tax, it depends.  If people could get used to it in simplistic form, then yes it might work.  The sad part is that Congress and others would then try to submit "exceptions to the rule" like, we shouldn't tax poor people, we shouldn't tax real estate, we shouldn't tax businesses who don't make money.  Very soon, we would be right back to the system which is in place.  What a lot of people don't realize is that they might pay as much or more with a flat tax system.\n\nThe current system is overly complex and could use a good simplification.
426275
The only penalty there should be is the loss of customers. There are way to many laws on things that would fix themselves. By having a government that tells us what is right and wrong about everything the populace losses the ability to know the difference for themselves.
751909
One of the best alternatives to all types of tax is the expenditure tax. Do away with council, income and corporate taxes and have a flat 30% expenditure tax. True, prices will increase in the short term but so will the income and hence we will have a balance. Also, this will mean that immigrants & assylum seekers will also pay the full tax and hence will not run away with using the services without pay anything.
460684
None for me, it goes to the American government, who takes way more than they need, if Bush hadn't grown the national debt AND FAILED to make the proper tax reform! between that and the tax CUTS for the RICH!! ... it's just bs, I won't go off on it here.\n-Duo
315354
it's like reverse welfare.  people who are responsible pay more tax.  people who have all these horrible children pay less.
159771
This would be a "regressive" tax which taxed those who are least able to pay in at a higher percentage.\nAttempts to balance this with a "luxury" tax have failed because they unfairly punish certain industries i.e. yacht manufacturers.\n\nIn principle, replacing the income tax with a consumption tax, such as the flat tax, offers the possibility of improving the efficiency, equity, and simplicity of the tax system. But these gains are uncertain and depend critically on the details of the reform. At least some of the gains could be made simply by modifying the existing system.\n\nIdealized consumption taxes may always look better than actual income tax systems. Once in place, though, they would be subject to the same compromises and pressures as the income tax is. They could even lead to a system that is less efficient and less fair than the one we have.
471843
Hell! They barely pay any taxes now. It's right at 15%, while everybody else pays close to 30%. With the standard deductions that's what it all works out to be. Average people don't qualify for those deductions for a reason, and the reason is you pay most of the taxes.
1143504
Legal risks as well as the tax consequences are very big.  HR and cultural issues becomes another concern.  Marketing as well as filing requirements in the countries affected, etc...just to name a few.\n\nThere's really too little information here to give any meaningful advice.
758177
I'm not doing all your homework for you, but I'll help.  The biggest disadvantage of sole proprietorship is liability.  If the business goes belly up, they can come after your personal assets.  Also you are more susceptible to lawsuits.