Convincing Flat Tax Arguments
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.

Several years ago, I wrote a column suggesting that when it came to abusing power, President Nixon was a piker compared to the Clintons. A book released at the time, “The Arrogance of Power: The Secret World of Richard Nixon,” alleged that Nixon tried to sic the Internal Revenue Service on his political enemies. He may well have intended to, but he never succeeded. Nixon selected Johnnie Walters as his IRS commissioner and when presidential aide H.R. Haldeman presented Mr. Walters with his list of hundreds of people that Nixon wanted audited, the commissioner refused and put away the list in a safe. Enemies of the Clinton administration were not that lucky. Is it any wonder that the full Barrett report is not being released?
One man, Steve Forbes, has a plan to make sure no president has similar power ever again. He wants to eliminate the IRS. Right about now, W-2s are being received, and the sturm und drang of the tax-filing season will weigh heavily on all hard-working Americans until April 15. According to Mr. Forbes’s latest book, “Flat Tax Revolution,” if America switched over to this system, we could file our tax returns with a postcard and abolish the IRS. What an excellent idea.
One of the first things I admitted to Mr. Forbes when I met him last week at the Forbes building on Fifth Avenue was that I did not vote for him in the 2000 GOP primary but that my husband did. My pick was Senator McCain, whom I admired very much until he went on “Saturday Night Live” as a guest host and made a fool of himself. My fiscally wiser husband thought Mr. Forbes’s flat tax idea was great and the fact that the father of five is pro-life made him a perfect candidate.
To me, however, the idea of a flat tax was frightening. What about my real estate and other tax deductions? What would happen to charities that depend on donations that can be tax deductible? Would the working poor who are not liable for taxes now have to pay them? I posed all of my doubts to Mr. Forbes, who graciously answered them all. The result? I’m actually thinking this could really work. I was especially delighted when I asked Mr. Forbes who would be hurt the most by the flat tax revolution. His answer: lobbyists. Well, considering what’s happening now with the Abramoff scandal, that’s a positive loss. Tax attorneys, Mr. Forbes said, are smart enough to find other venues for their talents. Accountants would still be needed for their bookkeeping skills. Those tax preparers who live off our entangled tax codes would probably be put out of business. In addition, the 100,000 IRS employees who presently have our lives under their control would have to be retrained. I pity them not.
In chapter seven of his book, Mr. Forbes explains that the flat tax would actually reduce interest rates, including mortgage rates. It would increase the value of housing and leave homeowners with more after-tax income. In the same chapter, he also claims that charities would not suffer because Americans do not have to be bribed by the tax code to give, and history demonstrates that people give whether tax rates are high or low. The bottom line is that when people have more, they give more. There are also generous exemptions for low-income families. Savings would no longer be taxed.
Other nations have already succeeded with the flat tax, and Mr. Forbes said he believes that this system would unleash the full economic potential of the country and stimulate growth in the form of more jobs and more government revenue to fund programs like Social Security and Medicare. What about Social Security, I asked? Mr. Forbes answered that the president was remiss in not presenting a more specific proposal to reform Social Security, giving opponents the opportunity to run deceptive campaigns. No member of AARP or anyone older than 50 would be affected by any proposed changes in this program. The frenzied opposition completely disregarded the fact that Social Security may not be there for our children and grandchildren.
I asked Mr. Forbes if he would ever consider a position in the administration. He smiled widely and said, “Well, I’d have to consider it, but I don’t think that will happen.” He insists he is not interested in seeking political office, saying he prefers to be an agitator getting the message out there for what will be good for the country.
Far from arrogant for power, Steve Forbes seems content with the role of messenger.