Tax Code Reform
Our tax code must be fair and balanced, which means everyone has to participate in the tax system. I believe the best replacement for our bloated tax code is a small flat tax on income for individuals and businesses, along with a small consumption tax on goods and services. A small consumption tax will ensure that everyone who benefits from our economy and way of life is contributing their fair share of taxes.
A flat tax is simple by definition, you multiply the amount of money that you made times the tax rate, and that's how much tax you owe. No deductions, no allowances, no complicated worksheets, no multiple page tax returns, no keeping track of receipts and expenses and mileage, no alternative minimum tax, and no need to pay a professional to prepare your return.
Simplifying the process and lowering the cost of compliance enhances profits for businesses, and allows the government to reduce the amount of money it spends on tax collection and compliance issues. A flat tax is cheaper for the individual, cheaper for businesses, and cheaper for the government. A flat tax also removes the loopholes created for certain industries and lobbyists, ensuring a fair system for everyone.
I would suggest that our flat tax system should recognize the difference in income levels, and be less of a burden to lower income taxpayers and those who are reducing their need for government assistance. The flat tax would therefore be on a sliding scale, with higher income taxpayers paying a higher percentage of their incomes.
I believe Social Security taxes should be optional for the self-employed and small business owners. I believe we should repeal the inheritance tax, commonly known as the death tax, because it causes an undue burden on family farms and small business owners. We should also abolish the alternative minimum tax since it will no longer be needed in a flat tax system.
For full details on tax code reform, including rates and implementation, please read my book "I Can Rebuild America: The 21st Century Contract With America" available now at Amazon.