Whilst most GOP presidential candidates realize there are many things wrong with the current tax system in the United States and are proposing different plans to fix this, Rand Paul feels the current tax code is so complicated and corrupt that it is beyond saving. Because of this, he proposes what he calls the “Fair and Flat Tax.”
The idea is to reform the current tax system and substitute it with a broad-based 14.5% “Fair and Flat Tax” on businesses and individuals. The plan, as Rand Paul explains for Wall Street Journal, is to immediately get rid of several federal taxes, payroll tax for workers, telephone taxes, as well as all tariffs and duties.
According to Paul, by specifically eliminating payroll taxes, employers will be much more inclined to hire additional workers and this will also increase post-tax income in the next 10 years by a minimum of 15%.
Here’s what tax experts are saying about my Fair and Flat Tax plan: pic.twitter.com/RY2jTZn6OS
— Dr. Rand Paul (@RandPaul) June 24, 2015
The current US tax system has already been exposed as being severely flawed and is one of the reasons for the country’s sluggish course in the past 10 years. As a result, the country is lagging $2 trillion behind what it should be with a normal recovery, says Paul.
Another problem Mr. Paul sees in the current tax code is that it gives too much power to the Internal Revenue Service. Basically, the IRS has turned into a “rogue agency”, as Paul puts it, with unchallenged access to citizen’s private financial information.
While Paul is the first to propose the “Fair and Flat Tax” in this particular form, the idea is not necessarily new, especially among Republicans.
According to CBS, in 1996 and 2000, Steve Forbes based his presidential campaign on something similar. Also, two other Republicans, Rick Perry in 2012 and Herman Cain in 2011 (the “9-9-9 Flat Tax”) proposed their own ideas of a flat tax.
Speaking about flat taxes, Dan Mitchell from the CATO Institute said:
“The flat tax is a good policy. It would boost U.S. competitiveness, encourage more saving and investment, reduce compliance costs, and collect revenue in a much less destructive fashion.” (CBS News)
Could Rand Paul’s “Fair and Flat Tax” be the new start that the current tax system desperately needs? Tell us what you think below and show your support for Rand Paul as president by sending us a comment or a tweet.
Written by Vladimir Covic; Edited by Staff
(Photo courtesy of John Ashley, Flickr CC BY 2.0)
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