By Josh Colver
Since the GOP’s health care meltdown, President Trump and Congress have pledged that tax reform is the next item on the agenda for 2017. Unfortunately, since Republicans failed to come together to achieve their core promise for the last seven years, which was repealing Obamacare, any realistic attempt at tax reform seems unlikely. The plan President Trump put forward a few months ago is better than what we currently have but not nearly good enough. The main points of Trump's plan are reducing the number of tax brackets from 7 to 3, doubling the standard deduction, and lowers the corporate rate to 15%. These three things are improvements upon our current system, but if President Trump wants to see a booming economy, a simpler system, and a plan that does drain the swamp, then he should put forward a flat tax. President Trump spoke highly of Steve Forbes’ book Flat Tax Revolution calling it a “must read by anyone interested in the future of our country.” If Trump wants to “Make America Great Again” it’s time for the flat tax and here's why.
The best case for the flat tax is simplicity. According to Forbes, Americans spend more than 8.9 Billion hours each year doing their taxes. It takes each American hours to go through all the deductions they apply for and filling out all the forms, put simply it's a nightmare. Nobody enjoys doing their taxes, but what if you could do your taxes in 2 minutes on a piece of paper the size of a postcard? Well with a flat tax you can! You would simply take out 10% or whatever number out of your total earnings write a check to the government and be finished. This reform would increase the tax compliance rate. According to Forbes, 45.3% of Americans don’t pay any taxes. This is mainly due to the fact that people find it too complicated of a system and don’t have the time to figure it out. A lot of people also don’t pay because they can’t afford to lose any more money than they already have, they need it to put food on the table. But if we adopted a flat tax not only would more people comply, people would get to keep more of what they make.
Along with the flat rate of tax, you would have to get rid of all the deductions and loopholes that people like to use. The only deduction that the flat tax should have is that you get to keep the first 50,000 dollars that you make so that we can allow people to get a good foothold of income before taxing it. Once you eliminate 70,000 pages of IRS code and decrease it to 1 listing a single rate of tax 90% of lobbyists in Washington D.C. now are kicked out because they have nothing to lobby about in D.C. A majority of lobbyists are there to lobby for special tax benefits and privileges but instituting a flat tax would render their jobs useless. A flat tax would go along way and would definitely ‘Drain the Swamp”.
The third reason for the flat tax is for economic growth. If you do as I suggested and lowered everyone's taxes to 10% exempting the first 50,000 dollars this would be the biggest tax cut in history and the economic growth that would follow would be unprecedented. When you allow people to keep more of what they earn, they have more to spend, and they spend more. When people start spending more businesses take in more profit and expand. When they grow, they need to hire more people to help so more jobs are created putting money in their hands. This cycle repeats itself over and over again growing the economy more and more. This plan is not revenue neutral. However, that is the point. This reform would give less revenue to the government, and that's the point, with our National Debt at nearly 20 trillion dollars we have to cut spending not raise taxes. The flat tax would do exactly that; it would demand that Congress live within its means and balance the budget.
In conclusion, I think the flat tax is a good step on the road to eventually eliminating the income tax. By making Americans lives simpler, cutting off Washington corruption, and kick starting the economy President Trump could indeed keep his campaign promises to “Drain the Swamp” and “Make America Great Again.” If Congress can pass this bill and the President signs it into law, he would guarantee himself a second term and help the GOP keep the majority in Congress. Mr. President, it’s up to you to set the agenda, use the Bully Pulpit to champion the Flat Tax. Explain to Americans on live TV how this will help make their lives better, don’t just Tweet about it…
Some specifics for the Flat Tax