re: The Flat Tax

quote:

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Business income would be determined by the following formula: Sales – cost of goods sold – wages – capital investments. As you’ll note, depreciation would become a thing of the past, because businesses would now be entitled to deduct the full cost of any asset purchases.

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What's a sale? Is a sale taxable this year or next year?

What's a cost of goods sold expense vs a non cost of good sold expense?

Wages - who is an employee? Are payments made to an independent contractor wages?

Capital Investments - wow, ok, what is a capital investment vs a repair? What is a capital investment vs a supply?

See... tons of wiggle room here. Tax CPAs do all their work in the wiggle room.