Is a Flat Tax a Good Idea? >
Current Tax Code Is Confusing
The flat tax saves time, provides choice, and restores fairness to the tax code
November 1, 2011
About Michael C. Burgess:
Rep. Michael C. Burgess, M.D., of Texas' 26th District was first elected to Congress in 2002. Burgess serves on the House Energy and Commerce Committee and is the vice chairman of the Subcommittee on Health. He is also a member of the Oversight and Investigations and Energy and Power subcommittees. In addition, Burgess is a member of the bicameral Joint Economic Committee, and founder and chairman of the Congressional Health Care
The flat tax is a good idea because it saves time, provides choice, and restores fairness to the tax code. Each year, Americans spend 6.1 billion hours preparing their tax forms and the IRS has 1,175 forms and instructions listed on its website. Even the IRS commissioner, Doug Shulman, has said, "I find the tax code complex, so I use a preparer."
Since 2003, I have introduced a flat tax bill into Congress. H.R. 1040, the Freedom Flat Tax, would create a tax system that minimizes the number of market-distorting investment decisions that are made as a result of the current tax system. People should base their financial decisions on common-sense economics, not the tax code. It is simple, fair, and pro-growth.
[Vote: Do the Rich Pay Enough in Taxes?]
The Freedom Flat Tax Act will phase in the flat tax over a three-year period. It will start with a 19 percent rate for the first two years and a 17 percent rate in subsequent years. There are no loopholes, but it will allow some personal exemptions, like a standard deduction. Unlike other versions of the flat tax, this legislation allows individuals and businesses to choose if and when they will opt into the system.
Choice is important. If people like the current system, they can still choose to file their taxes in the same way they have always done. If they, like myself and even the IRS commissioner, find the current code complex and confusing, they can choose a simple and fair option when filing. The bottom line is that the Freedom Flat Tax restores fairness to the tax code by treating everyone equally and provides a simple solution to a complex system.
- Check out a roundup of editorial cartoons on the economy.
- Read 10 Things You Didn't Know About the Bush Tax Cuts.
- Read how Rick Perry is using the flat tax the boost his campaign.
- Other Arguments
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#212887
Yes — Flat tax makes it more difficult for the government to divide Americans against each other
GROVER NORQUIST, President of Americans for Tax Reform
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#310880
Yes — The Cut, Balance and Grow plan will unleash economic growth
RICK PERRY, Texas Governor and Presidential Candidate
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#48781
Yes — Flat tax would spur foreign investment, job creation, and economic growth
MARY KATE CARY, Former White House Speechwriter for President George H.W. Bush
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#5112121
No — Flat tax would cut taxes only for the rich, which never ends well
JOHN IRONS, Research and Policy Director at the Economic Policy Institute
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#694112
No — The middle class pays more so the rich can pay less
DEAN BAKER, Author of 'The End of Loser Liberalism: Making Markets Progressive'
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#775103
No — A flat tax doesn't solve our problems; it just introduces new ones
KELLY PHILLIPS ERB, Author of Taxgirl Blog at Forbes.com
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#877106
No — Flat tax will benefit only the richest taxpayers
STEVE WAMHOFF, Legislative Director of Citizens for Tax Justice
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#978110
No — Flat tax shifts burden to low- and middle-income taxpayers
CHARLES B. RANGEL, U.S. Representative
