>>>I, too, was curious about the definition of government hand-out. I realize that welfare programs are important. My issue is the govt turning it into a business and offering financial incentives to states for increasing the # of recipients. It's the wrong message.
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>>>If you're going to talk about tax breaks for corporations, then you have to talk about fraud from Earned Income Tax Credits. The Treasure Dept Inspector General has acknowledged that the IRS improperly pays out billions every year. The IRS was given recommendations years ago for how to trim this, but didn't implement them.
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>>>Now more than ever, this country needs to look seriously at a simplified tax code and a flat tax rate.
>>
>>A flat tax, which would benefit the wealthy, is a completely different topic from tax fraud.
>
>How do you arrive at that conclusion? Right now most of the wealthy pay little or no taxes because of loop holes. With a graduated flat tax based on income groupings, each pays his own share. Personally, I would favor a consumption tax, if you buy it, you will pay the tax for it.

Isn't a graduated flat tax a contradiction in terms?

And what is there about a flat tax that would eliminate loopholes and what is there about a graduated tax that encourages them?

Loopholes are a product of one group or another trying to engineer a perceived benefit (either societal or personal) through the tax code. Whether it's the upper class trying for a deduction for charity donations, or the middle class trying for a mortgage interest deduction, or unions trying to make membership dues deductible, or big oil plumping for for a depletion allowance, I feel safe in predicting that even if a flat tax were adopted the < special interest group of your choice > would lobby for (and buy enough politicians to get) a loophole.