To make this transaction, the people who do taxes should be offered schooling of their choice paid for by the government. If they paid a 10% flat tax, our government would receive several hundred million dollars or more a year, just from this one company (now, times that by all the major companies in the nation). We would not have national debt within 5 years after getting the flat tax law passed. When you include taxing the regular employee the same amount, it would bring about less confusion when the individual pays their taxes. We are in a deep hole financially, as a nation. We all must contribute to help turn things around.
There are several politicians and a lot of voters who believe that a flat tax could help our national budget come down greatly. There are too many of the influencing Congress members to allow the tax loop holes to exist. They do not want to cut out all the loop holes they had set forth for themselves and all the major industries. Most of these congress members have been getting paid by the lobbyist for many years. So they are deep in the pockets of the Industrialist.
If our federal taxes was paid as a flat tax at the amount of 7%, it would generate enough money to get us out of debt. It would also close all of the loop holes for corporations paying their federal taxes. For example, why should I pay 13% of all of the money that I make, when Industrialist pay 3 to 7% or Exxon in the fall of 2007, profited 14 Billion dollars for that one quarter alone.
Now keep in mind taxes, research and all other expenses have been paid. If Exxon made that in one quarter when gas prices were high, then roughly Exxon makes at least 8 Billion dollars per quarter, times that by four quarters, we're looking at 32 Billion dollars a year made by this one company.