Filing a simple flat tax form the size of a postcard takes only minutes. Myths about a Flat Tax As with all major reforms, myths about a flat tax grow almost as fast as taxes themselves. The flat tax is regressive. The flat tax treats everyone equally. Under a pure flat tax, everyone receives equal treatment under the law because they pay the same flat tax rate.
Individuals only owe taxes on the income above the standard allowance.
Those earning low or middle-income wages receive the largest reduction in average tax rates because the family allowance constitutes a large portion of their total income. Notice that as income rises, so does the average tax rate. Under this system, individuals with higher incomes pay a higher percentage of their income in taxes than those with lower incomes, even though everyone faces the same tax rate on income above the allowance. Eliminating the mortgage payment deduction is unfair. The flat tax closes all loopholes, giving Americans more freedom to use their money how they want.