What is the flat tax? Q.What is the flat tax? A.While any tax system with flat rates could be called a flat tax, the name is usually reserved for a system developed by Robert Hall and Alvin Rabushka in 1985. Their flat tax is really a two-part VAT: All value added except wages is taxed at the business level and wages are taxed at the individual level at the same flat rate but with an exemption related to family size. Read more about What is the flat tax?
What is carried interest, and should it be taxed as capital gain? Q.What is carried interest, and should it be taxed as capital gain? A. Carried interest, income flowing to the general partner of a private investment fund, often is treated as capital gains for the purposes of taxation. Some view this tax preference as an unfair, market-distorting loophole. Others argue that it is consistent with the tax treatment of other entrepreneurial income. Read more about What is carried interest, and should it be taxed as capital gain?
What are the benefits of simpler taxes? Q.What are the benefits of simpler taxes? A.Simpler taxes have lower compliance costs—in both time and money—and may encourage taxpayers to use tax provisions aimed at helping people pay for socially desirable activities. Read more about What are the benefits of simpler taxes?
