Posted on 06/18/2015 6:13:49 AM PDT by GIdget2004
Sen. Rand Paul (R-Ky.) wants to gut the U.S. tax code and instead install a flat tax, insisting such a plan would “turbocharge” the economy and be fairer for average taxpayers.
Paul, who’s running for president in 2016, would put into place one 14.5 percent rate for individual, business and investment income, and remove all but a couple of the tax breaks currently on the books. The current top rate for individuals and many small businesses is near 40 percent, while the corporate rate tops out at 35 percent.
Taxpayers would get to keep the deductions for home mortgage interest and charitable deductions under Paul’s plan, and would also not have to pay any payroll taxes. Plus, the gift and estate taxes would be scrapped, and the first $50,000 of a family of four’s income would be exempt from taxes. All in all, Paul says it adds up to the biggest tax cut in U.S. history – reducing revenues by some $2 trillion over the first decade. The Kentucky Republican, who once proposed a budget that would balance in five years, says that his broader fiscal plan would actually reduce the federal debt, given the amount of spending cuts he proposes.
And he maintains that his tax plan alone would increase the size of the economy by 10 percent over a decade and create 1.4 million jobs, citing analysis by the free market Tax Foundation.
(Excerpt) Read more at thehill.com ...
Sounds about right. Not a Paul campaign supporter, but this about the best possible tax plan I can imagine. I would think it would need to be closer to 18%, though, realistically.
The nice things about a flat tax are everyone’s got some skin in the game and those with the best tax accountants don’t get to pay less.
Good idea if there was a way to prevent federal ‘mission creep’ which would keep raising the rates as the pols sought to purchase more votes.
That’s great. I’ve always been in favor of a flat tax. Seems to me to be the only equitable way to do an income tax.
But maybe it’s better without any deductions at all. The reason is that it opens the door to political tampering and eventually the flat tax would end up similar to the one we have now.
I know the real estate/homeowner constituency is strong and very hard to buck. Still, what will work best is a truly level playing field.
He can call what ever he wants , but we all know it will never happen in DC due to the amount of pork and special interests.
Not quite a "flat" tax, is it?
But it won't be the case. After it gets tinkered with, there will be a standard exemption/deduction that will still exempt many from paying taxes.
Wouldn’t need an IRS if it was a flat tax.
Ok ONE MORE TIME for you STUPID F*CKING PEOPLE who keep listening to the “Siren Song” of the “Flat-Taxers”, IF YOU DO NOT ADMEND THE US CONSTITUTION ABOLISHING THE INCOME TAX AND it’s INFRUSTRUCTURE(IRS)(lotsa luck on this one) THEN YOU WILL END UP WITH BOTH THE FLAT TAX AND THE INCOME TAX! OK got it NOW!
Nor as many accountants and lawyers.
So, it ain't gonna happen.
Unfortunately we would. I hate to hear myself acknowledge that, but there will always be tax cheats.
I think the secret would be to severely limit their ability to accuse a person and seize homes, businesses, bank accounts without a warrant issued by a judge.
No more guilty until you prove yourself innocent.
The estate and gift tax is basically a flat tax and it keeps attorneys and cpas very busy with the IRS. A flat tax would increase the volume of similar issues that all taxpayers would use to avoid or reduce the flat tax.
Good stuff man.
14.5% with no payroll taxes is good. ALL of the other flat tax proposals included 7.65% ee and er payroll. This one doesn’t and that’s really good.
Downsides ... this also taxes investment income [double taxation] and businesses [hidden tax in higher prices, lower wages, and/or reduced ROI] - and IIRC it keeps the EITC :(, and it doesn’t tax imports...
But hell I’d jump on this - then follow with an consitutional amendment that all payers must pay the same marginal rate.
I’m so happy that tax reform will be in the conversation this time around.
Paul's rate legitimizes the size and scope of government.
Wow. 1% growth and 140,000 jobs a year. You go, Rand Paul!
No. Seriesly. Go. Take your teeny tiny vision and just go away.
Is he running for dictator?
He needs to get Congress to change the law.
He can advocate for anything he wants, but he can't change the law unless he thinks he is above the law.
do you know what a business deduction is?
Yeah I think it would have to be higher - and if it’s to include payroll taxes then for sure it would be imo
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