Flat Tax Would Eliminate 'Crony Capitalism'

A flat tax augmented by a mandate to lesson government spending on a managed, longterm basis to establish a truly balanced federal budget.

All wage earners, corporations and businesses would be subject to the same tax rate. "Not for profit" organizations would be eliminated or subject to the same flat tax. Capital gains and dividends would not be subject to tax as the income had been taxed previously.

Business expenses would be deductible and capital investment would be deducted on an amortized basis consistent with the life expectancy of the investment.

All exemptions would be eliminated for individuals and businesses.

The positives of this plan is that all individuals and organizations would be on the same tax basis with an incentive to lower the expenses of the government. Elimination of exemptions would take the "social purpose" aspect out of the tax program.

Contributions to "social purpose" organizations would not be considered as taxable income to the organization as the donation had been previously taxed income to the donor. Retained earnings above the amount of donations for the tax year would be subject to the flat tax.

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Don Stuhldreher of IN 5:05PM February 08, 2012