Although you would reduce the amount of fraud with a lower tax rate, you would also decrease your income. The goal is to have the highest income possible, even

Although you would reduce the amount of fraud with a lower tax rate, you would also decrease your income. The goal is to have the highest income possible, even if that implies fraud or optimizations. Big companies will always have an advantage regarding taxes: they can provision more easily, pay people to optimize, lobby, etc. I'm not saying you have an optimal tax rate in the USA, but the naive approach regarding this problem will probably not work. More information: http://en.wikipedia.org/wiki/Optimal_tax http://en.wikipedia.org/wiki/Optimal_tax