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What are the benefits of a flat-tax system?
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The primary benefit of a flat tax is that it eliminates many deductions and credits, which simplifies filing taxes for taxpayers. Additionally, it can lead to lower tax rates for all income levels, as well as more equitable taxation across different income groups. This can help reduce economic inequality, since people with higher incomes would pay a greater percentage of their income in taxes than those who earn less. A flat tax also encourages businesses to invest in new technologies and other capital improvements, as they will be able to deduct these costs from their taxable income. Finally, a flat tax could lead to increased government revenue due to reduced complexity.