The idea is to have everything taxed at the same rate: income, dividends, capital gains, whatever. So every source of 'money coming in' gets treated and taxed the same way.
By having a flat tax it doesn't make sense to shift 'money in' under different categories because all gets taxed the same rate.
So for example, income, capital gains, dividends would all be taxed at 10% or 15% or whatever.
By having a flat tax it doesn't make sense to shift 'money in' under different categories because all gets taxed the same rate.
So for example, income, capital gains, dividends would all be taxed at 10% or 15% or whatever.