Since he first took office in 2008, President Barack Obama has been relentless in his cry for all Americans to pay their “fair share” of taxes, without ever once giving the specifics of a tax plan that would truly create a “fair share” tax system.
Here’s a novel idea: let’s take the President at his word. Let’s demand taxation fairness. And nothing will better insure that everyone is paying his or her “fair share” than a flat tax.
The concept of the flat tax is simple – one tax rate is applied to all income levels. If you make more – you pay more. If you make less – you pay less.
Our solution should not be to punish job creators, but to simplify the tax law with fairness that has everyone paying the same tax rate: 15 percent across the board. My proposal leaves two deductions: (1) charitable contributions since true charities do a better job of getting help directly to those who truly need it, and (2) a mortgage interest deduction for one residential homestead.
The President says he wants Warren Buffet to pay the same tax rate as his secretary. The President’s proposal will not accomplish that goal. A flat tax will do it by making the income tax, the capital gains tax, the gift tax, and the estate tax, all a simple 15 percent across the board tax rate.
Not only will it be fairer, but the economy will explode upward in a dramatic expansion and there will be even more revenue coming into the federal treasury. The historical facts show when you lower the tax rates, you create more growth, more businesses, more jobs and a much more robust economy – but it will be even better when everyone pays the same low tax rate – no wiggle room for the very wealthy.