Rand Paul shared an overview of a “fair and flat tax” plan he will soon unveil on Capitol Hill. The Republican presidential hopeful said the flat tax would would benefit all hard-working Americans to keep more of the money they earned while simplifying the United States daunting and massive tax code.
The Kentucky Senator’s plan would usher in a 14.5 percent flat tax for all individuals and businesses. Payroll taxes would be eliminated.
My plan is the largest tax cut in history, returning nearly $2 trillion to American families in the first 10 years. https://t.co/A4qea61pn0
— Dr. Rand Paul (@RandPaul) June 18, 2015
Rand Paul elaborated on his fair and flat tax plan during an interview with Fox News.
“We have a 70,000-page tax code and we’re chasing businesses overseas. We’re chasing Burger King to Canada. Every day there’s a new company reincorporating somewhere else. This would be the biggest proposal of any candidate so far. It would be the largest tax reduction in our history. Let’s have the debate in our country [about where] money is better spent. Is it better spent by people that earned it or [by] sending it to Washington.”
Senator Paul also stated that his flat tax plan would allow charitable and mortgage deductions without permitting wealthy individuals or companies get by without paying taxes. In an opinion piece Paul penned for the Wall Street Journal, he said President Barack Obama’s economic policies have created “rising income inequality.”
“Here’s what I propose for the middle class: The Fair and Flat Tax eliminates payroll taxes, which are seized by the IRS from a worker’s paychecks before a family ever sees the money. This will boost the incentive for employers to hire more workers, and raise after-tax income by at least 15 [percent] over 10 years.”
Paul said his fair tax plan “would blow up the tax code and start over.” The Senator has reportedly consulted with several notable financial experts for his flat tax idea. Those Paul spoke with include Stephen Moore from the Heritage Foundation, Reagan economist Arthur Laffer, and former presidential candidate Steve Forbes.
“All deductions except for a mortgage and charities would be eliminated,” Paul said. “The first $50,000 of income for a family of four would not be taxed and for low-income working families, the plan would retain the earned-income tax credit.”
Rand Paul also supports allowing all pilots to carry a gun.
“We’ve allowed guns in the cockpit for a long time. I keep meeting pilots when I travel around. They like having guns in the cockpit, but governments make it impossible to do,” Paul added.
What do you think about the fair and flat tax plan introduced by Rand Paul?
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