The current tax code is unjustifiably complex and unfair. It is designed to benefit those who have the money to pay lawyers and accountants and to disadvantage those who are trying to play by the rules. Worst of all, it has the enormously divisive element of not requiring a fair distribution of the burden. Will Rogers once said, "Any government that robs Peter to pay Paul will always have Paul's vote." This is the situation we find ourselves in now. To remedy this, we need to implement real tax reform that will:
* Reduce the power of the IRS by allowing taxpayers to complete their taxes on a postcard if they so choose.
* Create a new code consisting of just three rates: 10%, 15% and 25%
1. 10% for incomes less than $35,000 (single). Recognizing that it is a burden to have and raise children we would broaden the 10% tax rate to married couples earning up to $50,000.
2. 15% for incomes between $35,000-$75,000 (single). Again, recognizing that it is a burden to raise children, we would broaden the 15% tax rate to married couples earning between $50,000-$100,000.
3. 25% for incomes above $75,000 ($100,000 single).
* Allow tax deductions only for home mortgages and charitable giving.
* If they choose, taxpayers can stay with the existing tax structure.
* Protect the working poor through a $2,000 (individual) and $3,500 (married) tax credit.
* Implement a straight 15% corporate tax.
These reforms would allow for average tax revenues of approximately 18.5% of GDP, (our historical average) while greatly reducing the power of the IRS.
More, the economy would experience enormous growth as we eliminate distortions and inefficiencies that occur through tax avoidance.