Ben Carson Flat Tax Plan: Will Proposal Help GOP Candidate In Presidential Polls?

Ben Carson laid out his tax plan which would require at least some contribution from everyone, including low-income Americans. Releasing his flat tax proposal on Monday, the GOP candidate is planning a 14.9 percent flat tax on income and hopes the plan will help his presidential poll numbers.

As previously reported by the Inquisitr, the GOP candidate has long supported a flat tax plan, and compares it to Biblical tithing. Carson mentioned his plan at the last presidential debate, but offered no details until now.

Ben Carson explained how his plan eradicates inequality in the federal tax code.

“My flat tax plan has the power to rekindle our nation’s founding ideals by eliminating the needless complexity and treating every American, rich and poor, with or without lobbyists or lawyers, equal in their ability to achieve the American Dream.”

According to a press release, the proposed tax code changes create a simpler, single-rate system which not only encourages economic growth, but reduces tax cheating, as well.

As reported by the Washington Post, Carson’s flat tax plan would only apply to individuals and families whose incomes are above 150 percent of the poverty level. For instance, a family of four with a household income of less than $36,375 would be exempt from the tax.

However, families below the threshold would still be required to pay into the system. Carson’s plan includes a “de minimis tax payment,” which has yet to be disclosed. Many low-income households may end up paying more as the plan abolishes some current tax breaks, like the child tax credit.

Additionally, deductions for charitable giving and mortgage interest are slated to be gone. Taxes on capital gains and dividends, the estate tax, and the Alternative Minimum Tax would also be on the chopping block under Carson’s new flat tax plan.

While corporations generally bear a higher tax burden, the plan will effectively lower the business tax rate to the same 14.9 percent. Additionally, they will be allowed to take a full deduction on costs of investments. With the intent to encourage economic growth, the plan contrasts the current tax code.

“Our current system reduces incentives for entrepreneurial ventures and investment, and at the same time inhibits the growth of a vibrant economy,” Carson said.

By reducing the corporate tax rate, the retired neurosurgeon predicts the plan would create at least 5 million new jobs and stimulate an 11 percent wage increase across the board. He also expects profits from U.S. corporations will be re-invested back in America instead of overseas, while lifting the economic growth rate from 2.2 percent to 4 percent.

Currently, the top tax rate on ordinary income is almost 40 percent, and just under 24 percent on long-term investment income. Just like similar Republican tax plans, Carson’s proposal would substantially cut taxes on America’s wealthiest taxpayers, who receive much of their income from investments.

While other Republican contenders have proposed flat tax plans, Carson’s is much more far reaching. All the candidates have released some sort of proposal that will lower rates and minimize deductions, but none has gone as far as cutting the mortgage interest and charitable contribution deductions.

In sharp contrast to plans put out by Donald Trump and Jeb Bush, which would eliminate taxes on millions of people, the flat tax proposal would broaden the tax base by adding more taxpayers. Current presidential polls show billionaire real estate investor Donald Trump as the GOP front-runner.

Some experts fear Carson’s tax plan could have a negative effect on the U.S. budget. Even after removing popular tax credits, the proposal could potentially add more than $11 trillion to the federal government’s already deep deficit.

The tax plan announcement comes on the heels of several public arguments and resignations from top advisors within Carson’s presidential campaign camp. Leaving the campaign trail last week, campaign manager Barry Bennett, deputy campaign manager Lisa Coen, and communications director Doug Watts quit due to significant disagreements with longtime friend and adviser Armstrong Williams.

While current polls indicate Carson’s presidential campaign is in trouble, the proposal may be what the GOP candidate needs to fire up his supporters. However, until more details are released, critics do not believe the plan is enough to carry Carson to a win in the 2016 Iowa caucuses.

Monday’s press release falls short of some crucial details, but reveals how the candidate wants to become relevant in the presidential race again. As many Republican voters are looking for a major overhaul, the Ben Carson flat tax plan essentially rips up much of the federal tax code that has been in place for decades.

[Photo by Justin Sullivan/Getty Images]