July 18, 2005

Fast Growing Companies Prefer a Flat Tax

Matthew Phan discusses the obvious benefits of a simplified tax system. We waste hours and hours on our current tax morass:

Of the 341 executives interviewed, 48% preferred a flat corporate rate over the current tax system for businesses like their own, compared to 16% who supported the current system. 13% preferred a value-added consumption tax and 23% indicated that they were uncertain which was better.

The complexity of the current system could be one reason owners prefer a flat tax, at least from the CEOs that Inc. interviewed separately. "The simpler the tax structure and the more visibility you give it, the better," said David Steinberg, founder and CEO of InPhonix, the No. 1 company on the Inc. 500 list in 2004. "The more complex a system, the more accountants you need to hire."

Posted by James Zellmer at July 18, 2005 12:01 AM | Subscribe to this site via RSS:
Posted to Taxes