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The Flat Tax: Updated Revised Edition (Hoover Institution Press Publication) Paperback – March 17, 1995
This flat-tax plan is not an academic abstraction. Hall and Rabushka have designed tax forms, rewritten the Internal Revenue Code, and worked out all the practical details. The plan has withstood the scrutiny of leading experts on taxation and has been enthusiastically endorsed by many of them. Both the New York Times and the Wall Street Journal have praised the flat tax. Both Republicans and Democrats have introduced it as bills in previous sessions of Congress.
- Print length148 pages
- LanguageEnglish
- PublisherHoover Institution Press
- Publication dateMarch 17, 1995
- Dimensions6.25 x 0.5 x 9 inches
- ISBN-100817993126
- ISBN-13978-0817993122
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Product details
- Publisher : Hoover Institution Press; Second Edition, Revised (March 17, 1995)
- Language : English
- Paperback : 148 pages
- ISBN-10 : 0817993126
- ISBN-13 : 978-0817993122
- Item Weight : 8.8 ounces
- Dimensions : 6.25 x 0.5 x 9 inches
- Best Sellers Rank: #1,847,439 in Books (See Top 100 in Books)
- #432 in Tax Accounting
- #1,335 in Taxation (Books)
- Customer Reviews:
About the authors

Robert E. Hall holds a joint position endowed by Robert and Carole McNeil as a senior fellow at the Hoover Institution and a professor in the economics department, Stanford University. He is a member of the National Academy of Sciences and a fellow of the American Academy of Arts and Sciences, the Econometric Society and the Society of Labor Economists.
Hall is an applied economist with interests in technology, competition, employment issues, and economic policy. He is a frequent contributor to discussions of national economic policy, including monetary policy, fiscal policy, and competition policy. Hall's research focuses on levels of activity and stock market valuations in market economies and on the economics of high technology, particularly the Internet. His most recent book, Digital Dealing: How e-Markets Are Transforming the Economy, was published by W. W. Norton in 2001.
Along with Hoover colleague Alvin Rabushka, Hall is an active proponent of the flat tax. Their article in the Wall Street Journal in December 1981 was the starting point of an upsurge of interest in the flat tax. This led to their book, The Flat Tax (Hoover Institution Press, 1985 and 1995). The pair was recognized in Money magazine's Money Hall of Fame for their contributions to financial innovation over the past twenty years.
Hall is coauthor, with Marc Lieberman, of Economics: Principles and Applications, 3rd edition (South-Western, 2004).
Hall also serves as director of the research program on economic fluctuations and growth of the National Bureau of Economic Research, an interuniversity research organization. He is chairman of the bureau's Committee on Business Cycle Dating, which maintains the semiofficial chronology of the U.S. business cycle.
Hall has advised a number of government agencies on national economic policy, including the Justice Department, the Treasury Department, and the Federal Reserve Board. He served on President-elect Ronald Reagan's Task Force on Inflation Policy and was a member of the National Presidential Advisory Committee on Productivity. He has testified on numerous occasions before congressional committees concerning national economic policy. He presented the Ely Lecture to the American Economic Association in 2001.
Before coming to Stanford, Hall was a professor of economics at the Massachusetts Institute of Technology and an assistant professor at the University of California at Berkeley.
Born in Palo Alto, California, he attended school in Palo Alto and Los Angeles, received his B.A. from the University of California at Berkeley and his Ph.D. from the Massachusetts Institute of Technology.
Hall is married to economist Susan Woodward and lives in Menlo Park, California.

Alvin Rabushka is the David and Joan Traitel Senior Fellow at the Hoover Institution.
He is the author or coauthor of numerous books in the areas of race and ethnicity, aging, taxation, state and local government finances, and economic development. His books include Politics in Plural Societies (originally published in 1972 and reissued in 2008 with a foreword and epilogue); A Theory of Racial Harmony; The Urban Elderly Poor; Old Folks at Home; The Tax Revolt; The Flat Tax; From Adam Smith to the Wealth of America; Hong Kong: A Study in Economic Freedom; and the New China. Rabushka’s most recent publication is Taxation in Colonial America, which received Special Recognition as a 2009 Fraunces Tavern Museum Book Award.
He has published numerous articles in scholarly journals and in national newspapers. He has consulted for, and testified before, a number of congressional committees. In 1980, he served on President Ronald Reagan's Tax Policy Task Force.
Rabushka's books and articles on the flat tax (with Robert E. Hall) provided the intellectual foundation for numerous flat tax bills that were introduced in Congress during the 1980s and 1990s and the proposals of several presidential candidates in 1996 and 2000. He was recognized in Money magazine's twentieth-anniversary issue "Money Hall of Fame" for the importance of his flat tax proposal in bringing about passage of the Tax Reform Act of 1986. His pioneering work on the flat tax contributed to the adoption of the flat tax in Jamaica, Estonia, Latvia, Lithuania, Russia, Ukraine, Serbia, Romania, Bulgaria, Slovakia, the Czech Republic, Georgia, Mongolia, Mauritius, Montenegro, Macedonia, Albania, Kygyzstan, Kazakhstan, Belarus, Trinidad and Tobago, Pridnestrovie (Transdniestra), several Swiss Cantons, and the Federation of Bosnia and Herzegovina. He has also drafted flat tax plans for Austria, El Salvador, Guatemala, Mexico, Argentina, Chile, Canada, and Slovenia.
Rabushka received his AB in Far Eastern studies from Washington University (St. Louis) in 1962, followed by his MA and PhD degrees in political science from Washington University in 1966 and 1968. In 2007, he was honored as a distinguished alumnus of the School of Arts and Sciences at Washington University.
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The only real answer to spur the economy and solve the deficit at the same time is a true flat tax with no or extremely limited deductions, with the first $40K (or whatever a living wage is) non-taxable for everyone.
Fair? Yes. Progressive versus what actually exists in practice today? Absolutely.
I laughed and cried when I read of Warren Buffett's recent plea to raise income tax rates for the super rich. I'm not sure Warren would like a truly flat tax as it would actually touch him. Put another way, raising the top bracket to 50% or so still wouldn't really affect him, since his 'income' is for the most part sheltered and never shows. Do the math with me - WB's $6.7M tax bill last year divided by his liquid net worth works out to about .1%, not the 'only 17%' (?!) of his income that he claims in his op-ed. Most of his net worth has not been and will not ever be taxed under the current code. Buffett's statements about the rich paying their fair share yesterday were intellectually dishonest in my opinion.
Read this classic if you actually want to be informed on this issue - they've covered all the objections you can think of, and more. Anything that Jerry Brown and Ronald Reagan agreed on might be worth a look.
Now, if only someone somewhere had the charisma and political will to actually pull such a thing off, given that legions of lobbyists, CPAs, bankers, investment advisors, etc. etc. etc. would do everything they could possibly do to kill any such reform since it would negatively affect their businesses.
This book presents an alternative tax system: the flat tax. The flat tax strips away nearly all the complexity of the current tax code, reducing the entire tax system (with a couple exceptions like the social security tax) to a handful of figures and simple calculations, stripping away nearly all special cases to eliminate loopholes and opportunities for unequal treatment. The authors reduce the entire code to a mere seven very short pages of text, understandable by any financially-savvy person. The tax forms themselves are the size of postcards.
Robert Hall and Alvin Rabushka here present the rationales for the flat tax, the logic behind it, the details of how it would work, and common questions and answers about it. They labor at some length to present the complete details of the system. It's technical reading you can't simply breeze through: you'll have to work a little to understand it all, and it's best digested slowly. But any intelligent person with a little mathematical skill and mind for finance will come away from this book with significant understanding of exactly how the flat tax would work. That definitely cann't be said of any book that will ever discuss the current tax system.
Merits or demerits of the proposal aside, this presentation of the flat tax is excellent. If you want to understand the flat tax, whether to praise it, to bury it, or simply because you want to be better-informed, this is the book to read.