A Simple, Transparent and Fair Tax System for All Americans
Everybody Gains, America Prospers and We Return to Our Ideals
Diagnosis: A Tax System That Is Too Complex, Discourages Innovation and Stifles Economic Growth
Our complicated web of tax laws and regulations has grown to an absurd size of 10 million words. Last year, Americans wasted more than $230 billion and spent 6 billion hours, just to prepare our taxes. The tax code is riddled with special interest loopholes that incentivize taxpayers to “game” the system, and rewards those who do so skillfully.
The maze of rules, double-taxation of dividends and oppressive 35 percent federal corporate tax rate – the highest in the developed world – encourages U.S. companies to keep their profits and jobs overseas.
Prognosis: Without Change, Our Economy Will Continue to Suffer
Our current system reduces incentives for entrepreneurial ventures and investment, and at the same time inhibits the growth of a vibrant economy. Unless drastic reforms are made, the American people will continue to suffer the consequences.
Treatment Plan: Repeal the Entire Tax Code and Replace It With a True 14.9 Percent Flat Tax
- Replace the tax code with a true flat tax – no deductions, tax shelters or loopholes.
- Tax all income at a uniform 14.9 percent rate.
- To protect those rising from poverty, apply the flat tax only to income above 150 percent of the Federal Poverty Level (FPL). For example, a family of four will not pay the 14.9 percent tax on their first $36,375 of income.
- Treat everyone in America as citizen-owners and require those whose income is at or below 150 percent of the FPL to make a de minimis tax payment annually.
- Tax income only once: no more double taxation of capital gains, dividends and interest income at the personal level.
- Eliminate deductions for home mortgage interest, charitable giving and state and local taxes. The overwhelming majority of Americans do not benefit from these itemized deductions.
- Eliminate the Alternative Minimum Tax (AMT). Under the current tax system, the AMT forces middle-class Americans to calculate their tax liability twice and punishes them by requiring them to pay the larger of the two tax bills.
- Abolish the death tax in its entirety.
My Pledge: A Simple, Transparent and Fair Tax System for All Americans
My flat tax plan will increase our existing anemic 2.2 percent economic growth rate by an additional 1.6 percent, resulting in nearly 4 percent growth annually.
I am confident that over the first 10 years of my plan, this surge in growth will increase our real gross domestic product by more than 16 percent.
This expanded growth will result in more than five million new jobs over the coming decade and an increase in wages of nearly 11 percent during the same period.