I too favor a flat tax, simply because it's the most simple and elegant solution to the loophole problem. I know that people like Warren Buffet and others are aware of <1% tax loopholes and surely there are a lot of people that use it.
I agree that welfare should be reduced, but I'm not sure what is the better solution. Reduce payroll tax and increase your earnings by 10%? Put it into free healthcare? Soup kitchens?
I know that welfare is dishonest and unfair to those that work hard, but they do need some help. We just need them to figure out that they don't really want that "help". Many people are in debt and unable to contribute to businesses because of medical debt, but on the other hand, banks thrive off of debt which in turn gets lent to others to start other business, or buy homes.
So I really don't know what the best solution is.
To me, it makes sense how the welfare system works. Redistribute middle-class and lower class wages to the poor, keep everyone making around 20k (whether by work or welfare) a year, and keep them all owing money to the banks.
I don't like it though.
It just seems a lot more complex than just let employees keep their money, from a government and corporate standpoint, it seems more financially beneficial to lower all the earnings and keep everyone in debt. Like, if workers were able to keep that extra 10%, there would be less people in debt, more poor just completely without money and no way to repay debt, and it seems like it would remove a huge chunk of the banking income.
