That's a function of the tax rate, which is why most advocates call for a rate of 17 percent. "The real question is the impact on the middle class. And with the generous family-based allowance under a flat tax, they wouldn't pay after reform," Mitchell said. "The poor don't pay under the current system. Part of the political task facing proponents of a flat tax is convincing voters it won't stick poor and middle class voters with a higher tax bill. Mitchell allowed that the idea could be politically difficult to implement because "there are so many interest groups that benefit from the current system." "It's not a cure-all, but it minimizes the distortions and damage associated with the current system," he said. Mitchell pointed to the experience of Hong Kong, which has implemented a version of a flat tax, to argue that the proposal would help increase growth and generate prosperity. competitiveness, encourage more saving and investment, reduce compliance costs, and collect revenue is a much less destructive fashion." "The flat tax is good policy," Dan Mitchell, a senior fellow with the conservative CATO Institute, told CBS News. more competitive, and reduce the costs associated with filing taxes under the current complex system. Rick Perry in 2012 and businessman Herman Cain, whose 9-9-9 flat tax made for a memorable campaign slogan.Ĭonservative policy analysts have generally embraced the idea, pitching it as a way to juice economic growth, make the U.S. Businessman Steve Forbes based his presidential campaign on the idea in 19, and Republican candidates have periodically resurrected it since then, most recently Texas Gov. A flat tax has long enjoyed support among some elements of GOP.
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