A flat tax with no deductions would not apply to business owner's gross income (profit) and gross sales. The Flat tax scenario applies to individual income taxes thus not to business "expenses" which go to Schedule C 1040 and are subtracted from gross sales or gross income which becomes adjusted gross income which finally goes to form 1040 for individual application of the income tax. But this misconception will be attempted to be applied by those who see profit as an evil, and is telling of the perception of fairness which is not and can not be a part of the formula of taxation applied to individuals vis-à-vis business. They are like apples versus oranges for comparison.I can't see business owners supporting a flat tax with no deductionsthe tax deduction of the employee's pay...that is given to the employer../the reason to claim every dime you are paying out in payroll...to get the deduction....
a flat tax, there are no deductions for businesses payroll.....
If you take in 1,000,000 in one year but after paying payroll, cost of goods, etc. you are left with $100,000 profit for your own income....you'd pay (at a 30% flat tax rate) tax on the 1,000,000...which would be $300,000. Instead of the current 28% on $100,000, which is $28,000.
makes sense...if businesses would still get deductions