Eliminate the IRS, Corporate Income Tax, Personal Income Tax, Social Security Tax and Medicare Tax.
Introduce a 20% Value Added Tax. This tax would apply to original value of imports and natural resources and all additions to value until final sale.
Rent or mortgage interest up to $15, 000 per year, state and local taxes, unprocessed and unprepared food items, health insurance and non-discretionary medical costs would be excluded from taxes.
- Current tax policy penalizes the use of labor as opposed to the use capital. Labor is taxed. Capital gets tax incentives. This policy would encourage the use of labor as opposed to capital.
- Current tax policy assesses a tax burden of about 30% on goods produced in America, and a 0% tax burden on imported goods. The proposed change in tax policy would make American made good relatively cheaper than imported goods. This would encourage employment and investment in America.
- Current tax policy encourages individuals and corporations to change their behavior in less than optimum ways to reduce taxation. The change in tax policy would reduce these changes and make economic behavior more rational. It will reduce government involvement in people's lives.
- Current tax policy encourages corporations to direct profit abroad and even to relocate abroad. The proposed policy would remove all such incentives and encourage international corporations to relocate in America.
- Current tax policy is regressive in that it charges the highest percentage of social security taxes to the lowest wage earners. The tax policy changes would remove the most regressive current tax.