No offsets or deductions would squash small businesses/ startups - especially sole proprietorships.
Not really, because going in, they would know the tax rate on what they make, plus there would be a provision in the flat tax to take care of businesses and individuals who went into the red (but only for a limited time).
And honestly, ask yourself this:
Would a flat tax versus the tax crap we have now stop anyone from going into business?
Would Zuckerberg say, wow flat tax on what I make, I won't start facebook.
No, all small businesses and people who start a small business are in it to make money.
How? The insurance companies were going to turn over a new leaf on their own?
We could still do this today.
Simple, the feds give every single eligible person say a flat amount based on income to purchase insurance.
So if say you get $100 per month, you get insurance and it cost you $200 a month, the feds are paying half.
Now, the biggest problem with the entire health care industry is not just insurance companies, but the drug companies, the implement companies (cathethers, blah blah), the government wanting so much paperwork for a simple paper cut, and of course lawyers.
It would take an Alexander to cut the Gordian knot of our health care industry, but it can be done.