Yet, hope springs eternal, maybe the time has come where the people will be willing to actually do the right thing, but again, like the third rail of politics, the entitlements, that are always wanting some sort of change to save those programs, it always fails.
Rand Paul's 'Fair and Flat' Tax Proposal
Source: Allen B. West and Jacob Kohlhepp, "Rand Paul\'s 'Fair and Flat' Tax Proposal," Washington Times, June 30, 2015.
July 2, 2015
Sen. Rand Paul's flat tax plan hits all the right notes, including greater simplicity, lower rates for everyone and a more competitive system of corporate taxation, says Allen B. West, president and CEO of the National Center for Policy Analysis, and research associate Jacob Kohlhepp.
- Collapsing all of the brackets into a single 14.5 percent rate will make tax filing less complicated. This is important when Americans are spending $400 billion and nearly 6 billion hours on compliance.
- The territorial business taxation system will encourage American multinational corporations to bring home their revenue and avoid double taxation.
- The suggested change to upfront expensing of capital would reduce uncertainty and encourage investment, making businesses more productive.
- Capital gains would still be double-taxed, as corporate profits would be taxed both at the corporate level and at the shareholder level.
- The Tax Foundation has pointed out that even with the massive economic growth unleashed by the plan, there will still be a $1 trillion revenue loss over the course of 10 years. This means there must be an accompanying plan to sensibly reform federal government spending.