What about all the people that worked on Cowboy Bebop on Netflix? It was cancelled after one season because Netflix couldn't justify it with the numbers they were seeing...
That show was a horrific bastardization of the source material, and fans knew it was DOA before it even came out.
Firefly is another great example.
Firefly came and went well before torrenting hit it's peak, and there is no claim anywhere that it's cancellation had anything to do with online viewers - simply with the studio's lack of interest in a Sci-Fi Western.
It's just basic economics. If people aren't paying for a thing, then there is no incentive for people to make that thing.
That doesn't match with Hollywood, where most projects get their income from product placement and advertisements. Notice that NO show/movie launched on Hulu, Netflix, etc actually makes any money itself (no tickets, no rental fees, etc.), they are all covered in that one monthly payment.
I'm not going to bother arguing against using the violence of organized crime syndicates calling themselves "government" - either you are opposed to the use of force, fraud, and coercion, or you're not.
RE: Flat Tax: 5%-10%