Taxation

The current tax code is 71,684 pages of legalese that only a select few can, or would even want to, understand. It is so onerous and complicated that even the head of the IRS doesn’t do his own taxes.  If there’s one thing I’ve learned while working with complicated systems of many different kinds, there’s only so much altering, amending, tweaking, and patching that they can stand.  Eventually they get to a point where the system breaks down and simply won’t work any more.  There’s no amount of amending, patching or reform that will fix them.  The system has to be completely dismantled and replaced! The system has to be rebuilt from scratch.  That’s why I support Herman Cain’s 9-9-9 plan.

Phase 1 – 9-9-9

  • Current circumstances call for bolder action.
  • The Phase 1 Enhanced Plan incorporates the features of Phase One and gets us a step closer to Phase two.
  • I call on the Super Committee to pass the Phase 1 Enhanced Plan along with their spending cut package.
  • The Phase 1 Enhanced Plan unites Flat Tax supporters with Fair tax supporters.
  • Achieves the broadest possible tax base along with the lowest possible rate of 9%.
  • It ends the Payroll Tax completely – a permanent holiday!
  • Zero capital gains tax
  • Ends the Death Tax.
  • Eliminates double taxation of dividends
  • Business Flat Tax – 9%
    • Gross income less all investments, all purchases from other businesses and all dividends paid to shareholders.
    • Empowerment Zones will offer additional deductions for payroll employed in the zone.
  • Individual Flat Tax – 9%.
    • Gross income less charitable deductions.Empowerment Zones will offer additional deductions for those living and/or working in the zone.
  • National Sales Tax – 9%.
    • This gets the Fair Tax off the sidelines and into the game.

Phase 2 – The Fair Tax

  • Amidst a backdrop of the economic boom created by the Phase 1 Enhanced Plan, I will begin the process of educating the American people on the benefits of continuing the next step to the Fair Tax.
  • The Fair Tax would ultimately replace individual and corporate income taxes.
  • It would make it possible to end the IRS as we know it.
  • The Fair Tax makes our exported goods and services the most competitively internationally than any other tax system.

Phase 1 Enhanced Plan – Summary

  • Unites all tax payers so we all pay income taxes and no one pays payroll taxes
  • Provides the least incentive to evade taxes and the fewest opportunities to do so
  • Lifts a $430 billion dead-weight burden on the economy due to compliance, enforcement, collection, etc.
  • Is fair, neutral, transparent, and efficient
  • Ends nearly all deductions and special interest favors
  • Ends all payroll taxes
  • Ends the Death Tax
  • Features zero tax on capital gains and repatriated profits
  • Lowest marginal rates on production
  • Allows immediate expensing of business investments
  • Eliminates double taxation of dividends
  • Increases capital formation. Capital per worker drives productivity and wage growth
  • Capital formation will aid capital availability for small businesses
  • Features a platform to launch properly structured Empowerment Zones to revitalize our inner cities
  • We all know the Fed has tripled the money supply since 2008. They have been printing money out of thin air to finance the Obama spending machine. While true Fed reform that restores sound money may have to wait for my election, the best thing we can do now is to pursue policies that increase the DEMAND for dollars to help mitigate the risks associated with the increase in the supply.
  • Pro-growth economic policies equal a strong dollar policy.

The natural state of our economy is prosperity. Freedom ensures that.  We must get the government off our backs, out of our pockets and out of our way in order to return to prosperity.  Policy uncertainty is killing the economy.