> This would be trivially solved by simple and flat taxes, but the main problem with fair and flat taxes is they lack the flexibility to be used as a political

> This would be trivially solved by simple and flat taxes, but the main problem with fair and flat taxes is they lack the flexibility to be used as a political social engineering tool. How do simple flat taxes solve the underreporting problem? Surely there is still an incentive not to report rental & proprietorship income if it is not well tracked? Perhaps there is a lower incentive if these mostly affect wealthier people and the marginal rate was lower, but the incentive is still there.