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Flat Tax Would Eliminate 'Crony Capitalism'
Flat tax would spur foreign investment, job creation, and economic growth
November 1, 2011
About Mary Kate Cary:
Mary Kate Cary is a former White House speechwriter for President George H.W. Bush. She currently writes speeches for political and business leaders, and is a contributing editor for U.S. News & World Report.
Do you agree that "billionaires should pay the same as janitors," as President Obama has been saying on the campaign trail? If you do, then the flat tax is for you. It's also for you if you find our current tax code to be complicated, unfair, inadequate in terms of bringing in enough revenues, and a burden on both families and businesses. These days, that's just about everybody—conservatives, liberals, and independents.
It's time to revamp our tax code in a way that spurs foreign investment, job creation, and economic growth. The flat tax would fuel all three, in large part because it would end double taxation of saving and investing. Eliminating loopholes and deductions would lighten the bureaucratic and financial burden on businesses and families—do you know anyone who doesn't either pay an accountant or buy software to do their taxes? Americans currently spend $300 billion a year in tax preparation costs, to navigate a tax code that is thousands of pages long.
[Vote: Do the Rich Pay Enough in Taxes?]
A flat marginal rate of, say, 16 or 17 percent would put billionaires on the same footing as janitors, and ensure that the rich pay the same marginal rate as the rest of us. Giving families of four an allowance, for example, for the first $50,000 of income would protect the most vulnerable in our society while making sure that everyone else would pay the same level above that. Unlike the current tax code, a flat tax is fair, easy to understand, and restores people's faith in government by eliminating "crony capitalism" in Washington.
Seventeen foreign countries have adopted a flat tax since 1994, because they want the economic growth and opportunity that have come to low-tax nations. Hopefully Washington will see what other foreign capitals see: that higher marginal tax rates result in less revenue collected, not more. Lower tax rates and a simpler, fairer system may not be a silver bullet, but it's certainly an idea that's catching on around the world.
- 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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#112984
Yes — The flat tax saves time, provides choice, and restores fairness to the tax code
MICHAEL C. BURGESS, U.S. Representative
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#211781
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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#310176
Yes — The Cut, Balance and Grow plan will unleash economic growth
RICK PERRY, Texas Governor and Presidential Candidate
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#5105112
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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#688104
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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#77196
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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#87298
No — Flat tax will benefit only the richest taxpayers
STEVE WAMHOFF, Legislative Director of Citizens for Tax Justice
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#975102
No — Flat tax shifts burden to low- and middle-income taxpayers
CHARLES B. RANGEL, U.S. Representative
