Fixing a Broken Tax Code
Fixing our broken tax system should be a top priority for the new Congress and the next president.
The bewildering tangle of tax brackets, deductions and loopholes rewards the government while discouraging productivity and sending businesses overseas. It gives the Internal Revenue Service tremendous power over individual Americans' lives and makes the agency a tool for stifling political speech. It hurts Americans who spend an average of 6 billion hours and hundreds of billions of dollars every year complying with the tax code.
It's time for change.
Restoring the Flat Tax would eliminate the shortcomings of the current tax regime by making the system simple, straightforward and transparent.
Enacting the Flat Tax would eliminate the shortcomings of the current tax regime by making the system simple, straightforward and transparent. It would level the playing field by closing loopholes which allow the lobbyists and politicians to take advantage of the current system's complexity and leave most Americans on the hook. The Flat Tax would end IRS intrusion by dramatically reducing its size and scope.
Principles of a Flat Tax
Any Flat Tax proposal should be outcome-driven and focus on key principles of:
A simple, fair and honest 17% Flat Tax would promote economic growth that would restore GDP growth to more than 4%, creating new jobs and allowing workers to get pay raises and their incomes to rise.
A 17% flat income tax rate for everyone after generous exemptions for adults and children; eliminate double taxation on personal savings, dividends and capital gains; eliminate the death tax.
Add your voice to the call to enact the Flat Tax.
Fixing our broken tax system should be a top priority for the new Congress and the next president. It’s time to eliminate the shortcomings of the current tax regime. Join in the call to make the tax system simple, straightforward and transparent.
Eliminate tax loopholes that allow the well-connected to escape paying their fair share.
Most Americans could fill out their annual tax returns on a postcard in about 5 minutes or with a few keystrokes on their computers.
Curb government abuse by removing opportunities for lobbyists and politicians to game the system.
A $13,200 standard deduction for each adult, exemptions for dependents and a higher exemption for single mothers. A family of four would pay no federal income tax on its first $52,000 in wages.
Resist the urge to maintain politically popular charitable and mortgage interest deductions. Close the door once and for all on special interest deductions that junk up the tax code.
Let taxpayers choose whether to file under the old or new system.
The Flat Tax has delivered remarkable results across the world. Between 2000 and 2010, more than 30 countries adopted some form of a Flat Tax. For example, Russia saw tax revenues double in the first four years of its Flat Tax. Hong Kong is a Flat Tax juggernaut. In Baltic states such as Estonia, Latvia and Lithuania, the Flat Tax is producing impressive results.