Other studies put the cost at 65 cents per dollar collected - even more for certain types of taxes. There is a better way. Under a flat tax, all income is taxed, and it is taxed at the same rate. Furthermore, income is taxed only once, at its source, when it is realized. Let's take a closer look.
All income is taxed.
Surprisingly, the amount of revenue the federal government collects from the personal income tax is only 9.5 percent of total personal income. If corporate income is included, federal income taxes take only 11 percent of income. Today's deductions, exemptions and loopholes result in more than half of all personal income not being taxed at all. All income is taxed at the same rate. Under the current tax system, a housewife can enter the labor market in a minimum-wage job and be taxed at a 40 percent marginal tax rate because of her husband's earnings.